MARSHALL.NS WACC - Weighted Average Cost of Capital

The WACC of Marshall Machines Ltd (MARSHALL.NS) is 9.1%.

The Cost of Equity of Marshall Machines Ltd (MARSHALL.NS) is 15.25%.

The Cost of Debt of Marshall Machines Ltd (MARSHALL.NS) is 7.30%.

	Range	Selected
Cost of equity	11.90% - 18.60%	15.25%
Tax rate	24.90% - 26.10%	25.50%
Cost of debt	7.00% - 7.60%	7.30%
WACC	7.7% - 10.4%	9.1%

WACC

MARSHALL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.6	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	18.60%

Tax rate	24.90%	26.10%
Debt/Equity ratio	1.7	1.7
Cost of debt	7.00%	7.60%

After-tax WACC	7.7%	10.4%


Selected WACC	9.1%

MARSHALL.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 MARSHALL.NS:

cost_of_equity (15.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.6) + 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.