GRAPHITE.NS WACC - Weighted Average Cost of Capital

The WACC of Graphite India Ltd (GRAPHITE.NS) is 18.5%.

The Cost of Equity of Graphite India Ltd (GRAPHITE.NS) is 18.85%.

The Cost of Debt of Graphite India Ltd (GRAPHITE.NS) is 5.75%.

	Range	Selected
Cost of equity	17.40% - 20.30%	18.85%
Tax rate	31.20% - 35.60%	33.40%
Cost of debt	4.00% - 7.50%	5.75%
WACC	17.1% - 20.0%	18.5%

WACC

GRAPHITE.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.26	1.34

Additional risk adjustments	0.0%	0.5%
Cost of equity	17.40%	20.30%

Tax rate	31.20%	35.60%
Debt/Equity ratio	0.02	0.02
Cost of debt	4.00%	7.50%

After-tax WACC	17.1%	20.0%


Selected WACC	18.5%

GRAPHITE.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 GRAPHITE.NS:

cost_of_equity (18.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.26) + 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.