GINNIFILA.NS WACC - Weighted Average Cost of Capital

The WACC of Ginni Filaments Ltd (GINNIFILA.NS) is 11.6%.

The Cost of Equity of Ginni Filaments Ltd (GINNIFILA.NS) is 12.75%.

The Cost of Debt of Ginni Filaments Ltd (GINNIFILA.NS) is 8.55%.

	Range	Selected
Cost of equity	11.70% - 13.80%	12.75%
Tax rate	12.00% - 21.50%	16.75%
Cost of debt	6.60% - 10.50%	8.55%
WACC	10.5% - 12.7%	11.6%

WACC

GINNIFILA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.58	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.70%	13.80%

Tax rate	12.00%	21.50%
Debt/Equity ratio	0.25	0.25
Cost of debt	6.60%	10.50%

After-tax WACC	10.5%	12.7%


Selected WACC	11.6%

GINNIFILA.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 GINNIFILA.NS:

cost_of_equity (12.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.58) + 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.