GRINDWELL.NS WACC - Weighted Average Cost of Capital

The WACC of Grindwell Norton Ltd (GRINDWELL.NS) is 15.1%.

The Cost of Equity of Grindwell Norton Ltd (GRINDWELL.NS) is 15.10%.

The Cost of Debt of Grindwell Norton Ltd (GRINDWELL.NS) is 17.75%.

	Range	Selected
Cost of equity	13.30% - 16.90%	15.10%
Tax rate	24.90% - 25.20%	25.05%
Cost of debt	7.50% - 28.00%	17.75%
WACC	13.3% - 17.0%	15.1%

WACC

GRINDWELL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.78	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.30%	16.90%

Tax rate	24.90%	25.20%
Debt/Equity ratio	0	0
Cost of debt	7.50%	28.00%

After-tax WACC	13.3%	17.0%


Selected WACC	15.1%

GRINDWELL.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 GRINDWELL.NS:

cost_of_equity (15.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.78) + 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.