GANESHHOUC.NS
Ganesh Housing Corp Ltd
Price:  
997.00 
INR
Volume:  
51,052.00
India | Real Estate Management & Development
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GANESHHOUC.NS WACC - Weighted Average Cost of Capital

The WACC of Ganesh Housing Corp Ltd (GANESHHOUC.NS) is 17.6%.

The Cost of Equity of Ganesh Housing Corp Ltd (GANESHHOUC.NS) is 17.60%.
The Cost of Debt of Ganesh Housing Corp Ltd (GANESHHOUC.NS) is 18.75%.

Range Selected
Cost of equity 15.40% - 19.80% 17.60%
Tax rate 25.60% - 26.40% 26.00%
Cost of debt 7.50% - 30.00% 18.75%
WACC 15.4% - 19.8% 17.6%
WACC

GANESHHOUC.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 1.03 1.28
Additional risk adjustments 0.0% 0.5%
Cost of equity 15.40% 19.80%
Tax rate 25.60% 26.40%
Debt/Equity ratio 0 0
Cost of debt 7.50% 30.00%
After-tax WACC 15.4% 19.8%
Selected WACC 17.6%

GANESHHOUC.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 GANESHHOUC.NS:

cost_of_equity (17.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.03) + 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.