MATRIMONY.NS WACC - Weighted Average Cost of Capital

The WACC of Matrimony.Com Ltd (MATRIMONY.NS) is 14.0%.

The Cost of Equity of Matrimony.Com Ltd (MATRIMONY.NS) is 14.35%.

The Cost of Debt of Matrimony.Com Ltd (MATRIMONY.NS) is 8.05%.

	Range	Selected
Cost of equity	12.60% - 16.10%	14.35%
Tax rate	22.70% - 23.70%	23.20%
Cost of debt	7.90% - 8.20%	8.05%
WACC	12.3% - 15.7%	14.0%

WACC

MATRIMONY.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.69	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.60%	16.10%

Tax rate	22.70%	23.70%
Debt/Equity ratio	0.05	0.05
Cost of debt	7.90%	8.20%

After-tax WACC	12.3%	15.7%


Selected WACC	14.0%

MATRIMONY.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 MATRIMONY.NS:

cost_of_equity (14.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.69) + 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.