IFBIND.NS
IFB Industries Ltd
Price:  
1,256.90 
INR
Volume:  
38,554.00
India | Household Durables
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IFBIND.NS WACC - Weighted Average Cost of Capital

The WACC of IFB Industries Ltd (IFBIND.NS) is 14.7%.

The Cost of Equity of IFB Industries Ltd (IFBIND.NS) is 15.00%.
The Cost of Debt of IFB Industries Ltd (IFBIND.NS) is 7.25%.

Range Selected
Cost of equity 13.60% - 16.40% 15.00%
Tax rate 33.20% - 34.80% 34.00%
Cost of debt 6.90% - 7.60% 7.25%
WACC 13.3% - 16.0% 14.7%
WACC

IFBIND.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.81 0.92
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.60% 16.40%
Tax rate 33.20% 34.80%
Debt/Equity ratio 0.03 0.03
Cost of debt 6.90% 7.60%
After-tax WACC 13.3% 16.0%
Selected WACC 14.7%

IFBIND.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 IFBIND.NS:

cost_of_equity (15.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.81) + 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.