INDIAGLYCO.NS WACC - Weighted Average Cost of Capital

The WACC of India Glycols Ltd (INDIAGLYCO.NS) is 17.3%.

The Cost of Equity of India Glycols Ltd (INDIAGLYCO.NS) is 19.05%.

The Cost of Debt of India Glycols Ltd (INDIAGLYCO.NS) is 13.70%.

	Range	Selected
Cost of equity	17.60% - 20.50%	19.05%
Tax rate	13.00% - 17.70%	15.35%
Cost of debt	8.80% - 18.60%	13.70%
WACC	15.2% - 19.3%	17.3%

WACC

INDIAGLYCO.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.29	1.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	17.60%	20.50%

Tax rate	13.00%	17.70%
Debt/Equity ratio	0.31	0.31
Cost of debt	8.80%	18.60%

After-tax WACC	15.2%	19.3%


Selected WACC	17.3%

INDIAGLYCO.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 INDIAGLYCO.NS:

cost_of_equity (19.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.29) + 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.