EMMBI.NS WACC - Weighted Average Cost of Capital

The WACC of Emmbi Industries Ltd (EMMBI.NS) is 12.6%.

The Cost of Equity of Emmbi Industries Ltd (EMMBI.NS) is 14.55%.

The Cost of Debt of Emmbi Industries Ltd (EMMBI.NS) is 13.70%.

	Range	Selected
Cost of equity	13.30% - 15.80%	14.55%
Tax rate	25.20% - 26.80%	26.00%
Cost of debt	12.00% - 15.40%	13.70%
WACC	11.4% - 13.8%	12.6%

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	0.78	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.30%	15.80%

Tax rate	25.20%	26.80%
Debt/Equity ratio	0.78	0.78
Cost of debt	12.00%	15.40%

After-tax WACC	11.4%	13.8%


Selected WACC	12.6%

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 (14.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.78) + 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.