EXCELINDUS.NS WACC - Weighted Average Cost of Capital

The WACC of Excel Industries Ltd (EXCELINDUS.NS) is 15.6%.

The Cost of Equity of Excel Industries Ltd (EXCELINDUS.NS) is 15.50%.

The Cost of Debt of Excel Industries Ltd (EXCELINDUS.NS) is 28.20%.

	Range	Selected
Cost of equity	14.30% - 16.70%	15.50%
Tax rate	24.50% - 24.60%	24.55%
Cost of debt	7.50% - 48.90%	28.20%
WACC	14.2% - 17.0%	15.6%

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	0.89	0.95

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.30%	16.70%

Tax rate	24.50%	24.60%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.50%	48.90%

After-tax WACC	14.2%	17.0%


Selected WACC	15.6%

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 (15.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.89) + 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.