FINEORG.NS WACC - Weighted Average Cost of Capital

The WACC of Fine Organic Industries Ltd (FINEORG.NS) is 16.2%.

The Cost of Equity of Fine Organic Industries Ltd (FINEORG.NS) is 16.25%.

The Cost of Debt of Fine Organic Industries Ltd (FINEORG.NS) is 11.90%.

	Range	Selected
Cost of equity	14.20% - 18.30%	16.25%
Tax rate	25.80% - 26.00%	25.90%
Cost of debt	7.50% - 16.30%	11.90%
WACC	14.2% - 18.3%	16.2%

WACC

FINEORG.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.88	1.12

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.20%	18.30%

Tax rate	25.80%	26.00%
Debt/Equity ratio	0	0
Cost of debt	7.50%	16.30%

After-tax WACC	14.2%	18.3%


Selected WACC	16.2%

FINEORG.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 FINEORG.NS:

cost_of_equity (16.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.88) + 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.