DONEAR.NS WACC - Weighted Average Cost of Capital

The WACC of Donear Industries Ltd (DONEAR.NS) is 11.1%.

The Cost of Equity of Donear Industries Ltd (DONEAR.NS) is 13.80%.

The Cost of Debt of Donear Industries Ltd (DONEAR.NS) is 8.40%.

	Range	Selected
Cost of equity	12.40% - 15.20%	13.80%
Tax rate	26.30% - 27.60%	26.95%
Cost of debt	7.70% - 9.10%	8.40%
WACC	10.0% - 12.1%	11.1%

WACC

DONEAR.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.67	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.40%	15.20%

Tax rate	26.30%	27.60%
Debt/Equity ratio	0.56	0.56
Cost of debt	7.70%	9.10%

After-tax WACC	10.0%	12.1%


Selected WACC	11.1%

DONEAR.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 DONEAR.NS:

cost_of_equity (13.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.67) + 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.