MAITHANALL.NS WACC - Weighted Average Cost of Capital

The WACC of Maithan Alloys Ltd (MAITHANALL.NS) is 15.6%.

The Cost of Equity of Maithan Alloys Ltd (MAITHANALL.NS) is 15.70%.

The Cost of Debt of Maithan Alloys Ltd (MAITHANALL.NS) is 11.90%.

	Range	Selected
Cost of equity	14.40% - 17.00%	15.70%
Tax rate	22.10% - 22.70%	22.40%
Cost of debt	7.50% - 16.30%	11.90%
WACC	14.3% - 17.0%	15.6%

WACC

MAITHANALL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.9	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.40%	17.00%

Tax rate	22.10%	22.70%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.50%	16.30%

After-tax WACC	14.3%	17.0%


Selected WACC	15.6%

MAITHANALL.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 MAITHANALL.NS:

cost_of_equity (15.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.9) + 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.