DIAPOWER.NS WACC - Weighted Average Cost of Capital

The WACC of Diamond Power Infrastructure Ltd (DIAPOWER.NS) is 9.9%.

The Cost of Equity of Diamond Power Infrastructure Ltd (DIAPOWER.NS) is 109.15%.

The Cost of Debt of Diamond Power Infrastructure Ltd (DIAPOWER.NS) is 7.35%.

	Range	Selected
Cost of equity	93.50% - 124.80%	109.15%
Tax rate	4.30% - 8.70%	6.50%
Cost of debt	7.00% - 7.70%	7.35%
WACC	9.3% - 10.6%	9.9%

WACC

DIAPOWER.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	6.9%	7.9%
Adjusted beta	12.51	14.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	93.50%	124.80%

Tax rate	4.30%	8.70%
Debt/Equity ratio	32.18	32.18
Cost of debt	7.00%	7.70%

After-tax WACC	9.3%	10.6%


Selected WACC	9.9%

DIAPOWER.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 DIAPOWER.NS:

cost_of_equity (109.15%) = risk_free_rate (7.15%) + equity_risk_premium (7.40%) * adjusted_beta (12.51) + 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.