EUROTEXIND.NS WACC - Weighted Average Cost of Capital

The WACC of Eurotex Industries and Exports Ltd (EUROTEXIND.NS) is 7.4%.

The Cost of Equity of Eurotex Industries and Exports Ltd (EUROTEXIND.NS) is 11.20%.

The Cost of Debt of Eurotex Industries and Exports Ltd (EUROTEXIND.NS) is 6.85%.

	Range	Selected
Cost of equity	9.50% - 12.90%	11.20%
Tax rate	8.10% - 15.10%	11.60%
Cost of debt	6.70% - 7.00%	6.85%
WACC	7.0% - 7.8%	7.4%

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	0.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.50%	12.90%

Tax rate	8.10%	15.10%
Debt/Equity ratio	2.74	2.74
Cost of debt	6.70%	7.00%

After-tax WACC	7.0%	7.8%


Selected WACC	7.4%

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 (11.20%) = 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.