MANUGRAPH.NS WACC - Weighted Average Cost of Capital

The WACC of Manugraph India Ltd (MANUGRAPH.NS) is 14.8%.

The Cost of Equity of Manugraph India Ltd (MANUGRAPH.NS) is 15.05%.

The Cost of Debt of Manugraph India Ltd (MANUGRAPH.NS) is 11.25%.

	Range	Selected
Cost of equity	13.50% - 16.60%	15.05%
Tax rate	1.30% - 2.00%	1.65%
Cost of debt	7.60% - 14.90%	11.25%
WACC	13.1% - 16.4%	14.8%

WACC

MANUGRAPH.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.8	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.50%	16.60%

Tax rate	1.30%	2.00%
Debt/Equity ratio	0.07	0.07
Cost of debt	7.60%	14.90%

After-tax WACC	13.1%	16.4%


Selected WACC	14.8%

MANUGRAPH.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 MANUGRAPH.NS:

cost_of_equity (15.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.8) + 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.