DICIND.NS WACC - Weighted Average Cost of Capital

The WACC of DIC India Ltd (DICIND.NS) is 17.8%.

The Cost of Equity of DIC India Ltd (DICIND.NS) is 17.90%.

The Cost of Debt of DIC India Ltd (DICIND.NS) is 9.30%.

	Range	Selected
Cost of equity	15.60% - 20.20%	17.90%
Tax rate	21.40% - 23.30%	22.35%
Cost of debt	7.50% - 11.10%	9.30%
WACC	15.6% - 20.1%	17.8%

WACC

DICIND.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.06	1.32

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.60%	20.20%

Tax rate	21.40%	23.30%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.50%	11.10%

After-tax WACC	15.6%	20.1%


Selected WACC	17.8%

DICIND.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 DICIND.NS:

cost_of_equity (17.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.06) + 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.