HINDUNILVR.NS
Hindustan Unilever Ltd
Price:  
2,306.90 
INR
Volume:  
1,050,745.00
India | Household Products
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HINDUNILVR.NS WACC - Weighted Average Cost of Capital

The WACC of Hindustan Unilever Ltd (HINDUNILVR.NS) is 12.7%.

The Cost of Equity of Hindustan Unilever Ltd (HINDUNILVR.NS) is 12.70%.
The Cost of Debt of Hindustan Unilever Ltd (HINDUNILVR.NS) is 8.05%.

Range Selected
Cost of equity 11.10% - 14.30% 12.70%
Tax rate 24.90% - 25.50% 25.20%
Cost of debt 7.50% - 8.60% 8.05%
WACC 11.1% - 14.2% 12.7%
WACC

HINDUNILVR.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.51 0.69
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.10% 14.30%
Tax rate 24.90% 25.50%
Debt/Equity ratio 0 0
Cost of debt 7.50% 8.60%
After-tax WACC 11.1% 14.2%
Selected WACC 12.7%

HINDUNILVR.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 HINDUNILVR.NS:

cost_of_equity (12.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.51) + 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.