MADHAV.NS
Madhav Marbles and Granites Ltd
Price:  
46.69 
INR
Volume:  
38,854.00
India | Building Products
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MADHAV.NS WACC - Weighted Average Cost of Capital

The WACC of Madhav Marbles and Granites Ltd (MADHAV.NS) is 12.4%.

The Cost of Equity of Madhav Marbles and Granites Ltd (MADHAV.NS) is 11.75%.
The Cost of Debt of Madhav Marbles and Granites Ltd (MADHAV.NS) is 19.90%.

Range Selected
Cost of equity 10.40% - 13.10% 11.75%
Tax rate 23.10% - 28.80% 25.95%
Cost of debt 15.90% - 23.90% 19.90%
WACC 10.8% - 14.0% 12.4%
WACC

MADHAV.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.42 0.57
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.40% 13.10%
Tax rate 23.10% 28.80%
Debt/Equity ratio 0.28 0.28
Cost of debt 15.90% 23.90%
After-tax WACC 10.8% 14.0%
Selected WACC 12.4%

MADHAV.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 MADHAV.NS:

cost_of_equity (11.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.42) + 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.