GANECOS.NS WACC - Weighted Average Cost of Capital

The WACC of Ganesha Ecosphere Ltd (GANECOS.NS) is 11.4%.

The Cost of Equity of Ganesha Ecosphere Ltd (GANECOS.NS) is 12.80%.

The Cost of Debt of Ganesha Ecosphere Ltd (GANECOS.NS) is 8.30%.

	Range	Selected
Cost of equity	11.30% - 14.30%	12.80%
Tax rate	24.90% - 25.80%	25.35%
Cost of debt	6.60% - 10.00%	8.30%
WACC	10.0% - 12.8%	11.4%

WACC

GANECOS.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.53	0.69

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	14.30%

Tax rate	24.90%	25.80%
Debt/Equity ratio	0.27	0.27
Cost of debt	6.60%	10.00%

After-tax WACC	10.0%	12.8%


Selected WACC	11.4%

GANECOS.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 GANECOS.NS:

cost_of_equity (12.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.53) + 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.