EASUNREYRL.NS WACC - Weighted Average Cost of Capital

The WACC of Easun Reyrolle Ltd (EASUNREYRL.NS) is 4.9%.

The Cost of Equity of Easun Reyrolle Ltd (EASUNREYRL.NS) is 63.80%.

The Cost of Debt of Easun Reyrolle Ltd (EASUNREYRL.NS) is 5.30%.

	Range	Selected
Cost of equity	36.20% - 91.40%	63.80%
Tax rate	30.00% - 31.80%	30.90%
Cost of debt	5.30% - 5.30%	5.30%
WACC	4.3% - 5.4%	4.9%

WACC

EASUNREYRL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	6.9%	7.9%
Adjusted beta	4.23	10.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	36.20%	91.40%

Tax rate	30.00%	31.80%
Debt/Equity ratio	47.91	47.91
Cost of debt	5.30%	5.30%

After-tax WACC	4.3%	5.4%


Selected WACC	4.9%

EASUNREYRL.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 EASUNREYRL.NS:

cost_of_equity (63.80%) = risk_free_rate (7.15%) + equity_risk_premium (7.40%) * adjusted_beta (4.23) + 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.