HATHWAY.NS
Hathway Cable and Datacom Ltd
Price:  
15.99 
INR
Volume:  
3,132,671
India | Media

HATHWAY.NS WACC - Weighted Average Cost of Capital

The WACC of Hathway Cable and Datacom Ltd (HATHWAY.NS) is 16.2%.

The Cost of Equity of Hathway Cable and Datacom Ltd (HATHWAY.NS) is 16.3%.
The Cost of Debt of Hathway Cable and Datacom Ltd (HATHWAY.NS) is 5%.

RangeSelected
Cost of equity14.6% - 18.0%16.3%
Tax rate22.2% - 26.7%24.45%
Cost of debt5.0% - 5.0%5%
WACC14.6% - 17.9%16.2%
WACC

HATHWAY.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.931.09
Additional risk adjustments0.0%0.5%
Cost of equity14.6%18.0%
Tax rate22.2%26.7%
Debt/Equity ratio
0.010.01
Cost of debt5.0%5.0%
After-tax WACC14.6%17.9%
Selected WACC16.2%

HATHWAY.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 HATHWAY.NS:

cost_of_equity (16.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.93) + 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.