EXCELINDUS.NS WACC - Weighted Average Cost of Capital

The WACC of Excel Industries Ltd (EXCELINDUS.NS) is 12.9%.

The Cost of Equity of Excel Industries Ltd (EXCELINDUS.NS) is 12.90%.

The Cost of Debt of Excel Industries Ltd (EXCELINDUS.NS) is 14.35%.

	Range	Selected
Cost of equity	10.90% - 14.90%	12.90%
Tax rate	24.50% - 24.60%	24.55%
Cost of debt	7.50% - 21.20%	14.35%
WACC	10.9% - 14.9%	12.9%

WACC

EXCELINDUS.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.49	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	14.90%

Tax rate	24.50%	24.60%
Debt/Equity ratio	0	0
Cost of debt	7.50%	21.20%

After-tax WACC	10.9%	14.9%


Selected WACC	12.9%

EXCELINDUS.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 EXCELINDUS.NS:

cost_of_equity (12.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.49) + 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.