DUCON.NS WACC - Weighted Average Cost of Capital

The WACC of Ducon Infratechnologies Ltd (DUCON.NS) is 14.6%.

The Cost of Equity of Ducon Infratechnologies Ltd (DUCON.NS) is 18.35%.

The Cost of Debt of Ducon Infratechnologies Ltd (DUCON.NS) is 10.15%.

	Range	Selected
Cost of equity	16.00% - 20.70%	18.35%
Tax rate	25.30% - 28.20%	26.75%
Cost of debt	9.10% - 11.20%	10.15%
WACC	12.8% - 16.3%	14.6%

WACC

DUCON.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.1	1.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.00%	20.70%

Tax rate	25.30%	28.20%
Debt/Equity ratio	0.53	0.53
Cost of debt	9.10%	11.20%

After-tax WACC	12.8%	16.3%


Selected WACC	14.6%

DUCON.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 DUCON.NS:

cost_of_equity (18.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.1) + 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.