DHANI.NS WACC - Weighted Average Cost of Capital

The WACC of Dhani Services Ltd (DHANI.NS) is 12.7%.

The Cost of Equity of Dhani Services Ltd (DHANI.NS) is 12.70%.

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

	Range	Selected
Cost of equity	11.40% - 14.00%	12.70%
Tax rate	8.10% - 10.80%	9.45%
Cost of debt	4.00% - 23.90%	13.95%
WACC	10.0% - 15.3%	12.7%

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	0.55	0.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.40%	14.00%

Tax rate	8.10%	10.80%
Debt/Equity ratio	0.22	0.22
Cost of debt	4.00%	23.90%

After-tax WACC	10.0%	15.3%


Selected WACC	12.7%

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 (12.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.55) + 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.