DISHTV.NS WACC - Weighted Average Cost of Capital

The WACC of Dish TV India Ltd (DISHTV.NS) is 11.5%.

The Cost of Equity of Dish TV India Ltd (DISHTV.NS) is 12.10%.

The Cost of Debt of Dish TV India Ltd (DISHTV.NS) is 5.85%.

	Range	Selected
Cost of equity	10.10% - 14.10%	12.10%
Tax rate	23.10% - 42.70%	32.90%
Cost of debt	4.20% - 7.50%	5.85%
WACC	9.6% - 13.4%	11.5%

WACC

DISHTV.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.39	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.10%	14.10%

Tax rate	23.10%	42.70%
Debt/Equity ratio	0.08	0.08
Cost of debt	4.20%	7.50%

After-tax WACC	9.6%	13.4%


Selected WACC	11.5%

DISHTV.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 DISHTV.NS:

cost_of_equity (12.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.39) + 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.