EVEREADY.NS WACC - Weighted Average Cost of Capital

The WACC of Eveready Industries India Ltd (EVEREADY.NS) is 13.5%.

The Cost of Equity of Eveready Industries India Ltd (EVEREADY.NS) is 14.65%.

The Cost of Debt of Eveready Industries India Ltd (EVEREADY.NS) is 6.20%.

	Range	Selected
Cost of equity	12.90% - 16.40%	14.65%
Tax rate	18.00% - 19.20%	18.60%
Cost of debt	4.30% - 8.10%	6.20%
WACC	11.8% - 15.2%	13.5%

WACC

EVEREADY.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.72	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.90%	16.40%

Tax rate	18.00%	19.20%
Debt/Equity ratio	0.13	0.13
Cost of debt	4.30%	8.10%

After-tax WACC	11.8%	15.2%


Selected WACC	13.5%

EVEREADY.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 EVEREADY.NS:

cost_of_equity (14.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.72) + 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.