MARALOVER.NS WACC - Weighted Average Cost of Capital

The WACC of Maral Overseas Ltd (MARALOVER.NS) is 16.2%.

The Cost of Equity of Maral Overseas Ltd (MARALOVER.NS) is 18.80%.

The Cost of Debt of Maral Overseas Ltd (MARALOVER.NS) is 17.75%.

	Range	Selected
Cost of equity	14.20% - 23.40%	18.80%
Tax rate	14.50% - 20.20%	17.35%
Cost of debt	8.60% - 26.90%	17.75%
WACC	10.1% - 22.2%	16.2%

WACC

MARALOVER.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.88	1.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.20%	23.40%

Tax rate	14.50%	20.20%
Debt/Equity ratio	1.47	1.47
Cost of debt	8.60%	26.90%

After-tax WACC	10.1%	22.2%


Selected WACC	16.2%

MARALOVER.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 MARALOVER.NS:

cost_of_equity (18.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.88) + 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.