EMMBI.NS WACC - Weighted Average Cost of Capital

The WACC of Emmbi Industries Ltd (EMMBI.NS) is 11.2%.

The Cost of Equity of Emmbi Industries Ltd (EMMBI.NS) is 14.40%.

The Cost of Debt of Emmbi Industries Ltd (EMMBI.NS) is 11.80%.

	Range	Selected
Cost of equity	12.40% - 16.40%	14.40%
Tax rate	27.00% - 28.60%	27.80%
Cost of debt	11.50% - 12.10%	11.80%
WACC	10.2% - 12.2%	11.2%

WACC

EMMBI.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	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.40%	16.40%

Tax rate	27.00%	28.60%
Debt/Equity ratio	1.17	1.17
Cost of debt	11.50%	12.10%

After-tax WACC	10.2%	12.2%


Selected WACC	11.2%

EMMBI.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 EMMBI.NS:

cost_of_equity (14.40%) = 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.