EXIDEIND.NS WACC - Weighted Average Cost of Capital

The WACC of Exide Industries Ltd (EXIDEIND.NS) is 15.8%.

The Cost of Equity of Exide Industries Ltd (EXIDEIND.NS) is 16.20%.

The Cost of Debt of Exide Industries Ltd (EXIDEIND.NS) is 8.10%.

	Range	Selected
Cost of equity	14.50% - 17.90%	16.20%
Tax rate	27.30% - 27.70%	27.50%
Cost of debt	7.50% - 8.70%	8.10%
WACC	14.2% - 17.4%	15.8%

WACC

EXIDEIND.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.92	1.07

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.50%	17.90%

Tax rate	27.30%	27.70%
Debt/Equity ratio	0.04	0.04
Cost of debt	7.50%	8.70%

After-tax WACC	14.2%	17.4%


Selected WACC	15.8%

EXIDEIND.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 EXIDEIND.NS:

cost_of_equity (16.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.92) + 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.