MAITHANALL.NS
Maithan Alloys Ltd
Price:  
1,145.00 
INR
Volume:  
25,494.00
India | Metals & Mining
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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 17.60%.
The Cost of Debt of Maithan Alloys Ltd (MAITHANALL.NS) is 18.60%.

Range Selected
Cost of equity 16.00% - 19.20% 17.60%
Tax rate 22.90% - 23.70% 23.30%
Cost of debt 7.50% - 29.70% 18.60%
WACC 14.4% - 19.7% 17.1%
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 1.09 1.22
Additional risk adjustments 0.0% 0.5%
Cost of equity 16.00% 19.20%
Tax rate 22.90% 23.70%
Debt/Equity ratio 0.18 0.18
Cost of debt 7.50% 29.70%
After-tax WACC 14.4% 19.7%
Selected WACC 17.1%

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 (17.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.09) + 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.