GANESHHOUC.NS WACC - Weighted Average Cost of Capital

The WACC of Ganesh Housing Corp Ltd (GANESHHOUC.NS) is 17.4%.

The Cost of Equity of Ganesh Housing Corp Ltd (GANESHHOUC.NS) is 17.45%.

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

	Range	Selected
Cost of equity	15.20% - 19.70%	17.45%
Tax rate	25.60% - 26.40%	26.00%
Cost of debt	7.50% - 30.00%	18.75%
WACC	15.1% - 19.8%	17.4%

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	1.28

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.20%	19.70%

Tax rate	25.60%	26.40%
Debt/Equity ratio	0	0
Cost of debt	7.50%	30.00%

After-tax WACC	15.1%	19.8%


Selected WACC	17.4%

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 (17.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1) + 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.