MAITHANALL.NS
Maithan Alloys Ltd
Price:  
1,152 
INR
Volume:  
20,507
India | Metals & Mining

MAITHANALL.NS WACC - Weighted Average Cost of Capital

The WACC of Maithan Alloys Ltd (MAITHANALL.NS) is 17.1%.

The Cost of Equity of Maithan Alloys Ltd (MAITHANALL.NS) is 17.65%.
The Cost of Debt of Maithan Alloys Ltd (MAITHANALL.NS) is 18.6%.

RangeSelected
Cost of equity16.0% - 19.3%17.65%
Tax rate22.9% - 23.7%23.3%
Cost of debt7.5% - 29.7%18.6%
WACC14.5% - 19.8%17.1%
WACC

MAITHANALL.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta1.11.23
Additional risk adjustments0.0%0.5%
Cost of equity16.0%19.3%
Tax rate22.9%23.7%
Debt/Equity ratio
0.180.18
Cost of debt7.5%29.7%
After-tax WACC14.5%19.8%
Selected WACC17.1%

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 (17.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.1) + 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.