HINDNATGLS.NS WACC - Weighted Average Cost of Capital

The WACC of Hindusthan National Glass And Industries Ltd (HINDNATGLS.NS) is 7.7%.

The Cost of Equity of Hindusthan National Glass And Industries Ltd (HINDNATGLS.NS) is 42.40%.

The Cost of Debt of Hindusthan National Glass And Industries Ltd (HINDNATGLS.NS) is 5.50%.

	Range	Selected
Cost of equity	24.30% - 60.50%	42.40%
Tax rate	0.10% - 0.10%	0.10%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.2% - 10.2%	7.7%

WACC

HINDNATGLS.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	2.09	5.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	24.30%	60.50%

Tax rate	0.10%	0.10%
Debt/Equity ratio	15.75	15.75
Cost of debt	4.00%	7.00%

After-tax WACC	5.2%	10.2%


Selected WACC	7.7%

HINDNATGLS.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 HINDNATGLS.NS:

cost_of_equity (42.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (2.09) + 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.