DIXON.NS
Dixon Technologies (India) Ltd
Price:  
16,710.00 
INR
Volume:  
302,670.00
India | Household Durables
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DIXON.NS WACC - Weighted Average Cost of Capital

The WACC of Dixon Technologies (India) Ltd (DIXON.NS) is 15.0%.

The Cost of Equity of Dixon Technologies (India) Ltd (DIXON.NS) is 14.95%.
The Cost of Debt of Dixon Technologies (India) Ltd (DIXON.NS) is 11.20%.

Range Selected
Cost of equity 12.80% - 17.10% 14.95%
Tax rate 24.80% - 25.60% 25.20%
Cost of debt 7.60% - 14.80% 11.20%
WACC 12.8% - 17.1% 15.0%
WACC

DIXON.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.72 1
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.80% 17.10%
Tax rate 24.80% 25.60%
Debt/Equity ratio 0 0
Cost of debt 7.60% 14.80%
After-tax WACC 12.8% 17.1%
Selected WACC 15.0%

DIXON.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 DIXON.NS:

cost_of_equity (14.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.72) + 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.