GANESHHOUC.NS WACC - Weighted Average Cost of Capital

The WACC of Ganesh Housing Corp Ltd (GANESHHOUC.NS) is 15.3%.

The Cost of Equity of Ganesh Housing Corp Ltd (GANESHHOUC.NS) is 15.30%.

The Cost of Debt of Ganesh Housing Corp Ltd (GANESHHOUC.NS) is 20.85%.

	Range	Selected
Cost of equity	12.40% - 18.20%	15.30%
Tax rate	19.20% - 26.40%	22.80%
Cost of debt	7.50% - 34.20%	20.85%
WACC	12.4% - 18.2%	15.3%

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	0.66	1.11

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.40%	18.20%

Tax rate	19.20%	26.40%
Debt/Equity ratio	0	0
Cost of debt	7.50%	34.20%

After-tax WACC	12.4%	18.2%


Selected WACC	15.3%

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 (15.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.66) + 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.