DVL.NS WACC - Weighted Average Cost of Capital

The WACC of Dhunseri Ventures Ltd (DVL.NS) is 13.4%.

The Cost of Equity of Dhunseri Ventures Ltd (DVL.NS) is 15.35%.

The Cost of Debt of Dhunseri Ventures Ltd (DVL.NS) is 9.25%.

	Range	Selected
Cost of equity	12.60% - 18.10%	15.35%
Tax rate	20.80% - 22.50%	21.65%
Cost of debt	9.10% - 9.40%	9.25%
WACC	11.3% - 15.5%	13.4%

WACC

DVL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.69	1.1

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.60%	18.10%

Tax rate	20.80%	22.50%
Debt/Equity ratio	0.32	0.32
Cost of debt	9.10%	9.40%

After-tax WACC	11.3%	15.5%


Selected WACC	13.4%

DVL.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 DVL.NS:

cost_of_equity (15.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.69) + 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.