DHUNINV.NS WACC - Weighted Average Cost of Capital

The WACC of Dhunseri Investments Ltd (DHUNINV.NS) is 8.1%.

The Cost of Equity of Dhunseri Investments Ltd (DHUNINV.NS) is 11.70%.

The Cost of Debt of Dhunseri Investments Ltd (DHUNINV.NS) is 5.75%.

	Range	Selected
Cost of equity	10.50% - 12.90%	11.70%
Tax rate	24.10% - 26.80%	25.45%
Cost of debt	4.00% - 7.50%	5.75%
WACC	6.9% - 9.3%	8.1%

WACC

DHUNINV.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.44	0.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	12.90%

Tax rate	24.10%	26.80%
Debt/Equity ratio	0.92	0.92
Cost of debt	4.00%	7.50%

After-tax WACC	6.9%	9.3%


Selected WACC	8.1%

DHUNINV.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 DHUNINV.NS:

cost_of_equity (11.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.44) + 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.