HMVL.NS WACC - Weighted Average Cost of Capital

The WACC of Hindustan Media Ventures Ltd (HMVL.NS) is 14.7%.

The Cost of Equity of Hindustan Media Ventures Ltd (HMVL.NS) is 15.75%.

The Cost of Debt of Hindustan Media Ventures Ltd (HMVL.NS) is 9.10%.

	Range	Selected
Cost of equity	14.20% - 17.30%	15.75%
Tax rate	12.00% - 19.70%	15.85%
Cost of debt	7.50% - 10.70%	9.10%
WACC	13.2% - 16.2%	14.7%

WACC

HMVL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.88	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.20%	17.30%

Tax rate	12.00%	19.70%
Debt/Equity ratio	0.14	0.14
Cost of debt	7.50%	10.70%

After-tax WACC	13.2%	16.2%


Selected WACC	14.7%

HMVL.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 HMVL.NS:

cost_of_equity (15.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.88) + 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.