HEIDELBERG.NS WACC - Weighted Average Cost of Capital

The WACC of Heidelbergcement India Ltd (HEIDELBERG.NS) is 15.1%.

The Cost of Equity of Heidelbergcement India Ltd (HEIDELBERG.NS) is 15.30%.

The Cost of Debt of Heidelbergcement India Ltd (HEIDELBERG.NS) is 9.00%.

	Range	Selected
Cost of equity	13.70% - 16.90%	15.30%
Tax rate	25.50% - 26.30%	25.90%
Cost of debt	7.60% - 10.40%	9.00%
WACC	13.5% - 16.6%	15.1%

WACC

HEIDELBERG.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.82	0.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.70%	16.90%

Tax rate	25.50%	26.30%
Debt/Equity ratio	0.03	0.03
Cost of debt	7.60%	10.40%

After-tax WACC	13.5%	16.6%


Selected WACC	15.1%

HEIDELBERG.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 HEIDELBERG.NS:

cost_of_equity (15.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.82) + 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.