DHANI.NS WACC - Weighted Average Cost of Capital

The WACC of Dhani Services Ltd (DHANI.NS) is 13.6%.

The Cost of Equity of Dhani Services Ltd (DHANI.NS) is 13.80%.

The Cost of Debt of Dhani Services Ltd (DHANI.NS) is 13.95%.

	Range	Selected
Cost of equity	12.50% - 15.10%	13.80%
Tax rate	8.10% - 10.80%	9.45%
Cost of debt	4.00% - 23.90%	13.95%
WACC	11.1% - 16.1%	13.6%

WACC

DHANI.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.68	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.50%	15.10%

Tax rate	8.10%	10.80%
Debt/Equity ratio	0.18	0.18
Cost of debt	4.00%	23.90%

After-tax WACC	11.1%	16.1%


Selected WACC	13.6%

DHANI.NS's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for DHANI.NS:

cost_of_equity (13.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.68) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.