INEOSSTYRO.NS WACC - Weighted Average Cost of Capital

The WACC of INEOS Styrolution India Ltd (INEOSSTYRO.NS) is 16.8%.

The Cost of Equity of INEOS Styrolution India Ltd (INEOSSTYRO.NS) is 17.15%.

The Cost of Debt of INEOS Styrolution India Ltd (INEOSSTYRO.NS) is 8.25%.

	Range	Selected
Cost of equity	15.40% - 18.90%	17.15%
Tax rate	25.80% - 26.10%	25.95%
Cost of debt	7.90% - 8.60%	8.25%
WACC	15.1% - 18.6%	16.8%

WACC

INEOSSTYRO.NS WACC calculation

Category	Low	High

Long-term bond rate	7.2%	7.7%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.92	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.40%	18.90%

Tax rate	25.80%	26.10%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.90%	8.60%

After-tax WACC	15.1%	18.6%


Selected WACC	16.8%

INEOSSTYRO.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 INEOSSTYRO.NS:

cost_of_equity (17.15%) = risk_free_rate (7.45%) + equity_risk_premium (9.30%) * adjusted_beta (0.92) + 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.