EUROTEXIND.NS WACC - Weighted Average Cost of Capital

The WACC of Eurotex Industries and Exports Ltd (EUROTEXIND.NS) is 7.7%.

The Cost of Equity of Eurotex Industries and Exports Ltd (EUROTEXIND.NS) is 11.35%.

The Cost of Debt of Eurotex Industries and Exports Ltd (EUROTEXIND.NS) is 7.30%.

	Range	Selected
Cost of equity	9.40% - 13.30%	11.35%
Tax rate	8.10% - 11.40%	9.75%
Cost of debt	7.00% - 7.60%	7.30%
WACC	7.1% - 8.2%	7.7%

WACC

EUROTEXIND.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.31	0.58

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.40%	13.30%

Tax rate	8.10%	11.40%
Debt/Equity ratio	3.5	3.5
Cost of debt	7.00%	7.60%

After-tax WACC	7.1%	8.2%


Selected WACC	7.7%

EUROTEXIND.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 EUROTEXIND.NS:

cost_of_equity (11.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.31) + 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.