INDLMETER.NS WACC - Weighted Average Cost of Capital

The WACC of IMP Powers Ltd (INDLMETER.NS) is 9.8%.

The Cost of Equity of IMP Powers Ltd (INDLMETER.NS) is 195.70%.

The Cost of Debt of IMP Powers Ltd (INDLMETER.NS) is 7.65%.

	Range	Selected
Cost of equity	158.30% - 233.10%	195.70%
Tax rate	11.60% - 23.40%	17.50%
Cost of debt	7.00% - 8.30%	7.65%
WACC	9.0% - 10.6%	9.8%

WACC

INDLMETER.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	18.23	24.2

Additional risk adjustments	0.0%	0.5%
Cost of equity	158.30%	233.10%

Tax rate	11.60%	23.40%
Debt/Equity ratio	52.95	52.95
Cost of debt	7.00%	8.30%

After-tax WACC	9.0%	10.6%


Selected WACC	9.8%

INDLMETER.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 INDLMETER.NS:

cost_of_equity (195.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (18.23) + 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.