MAYURUNIQ.NS WACC - Weighted Average Cost of Capital

The WACC of Mayur Uniquoters Ltd (MAYURUNIQ.NS) is 16.1%.

The Cost of Equity of Mayur Uniquoters Ltd (MAYURUNIQ.NS) is 16.15%.

The Cost of Debt of Mayur Uniquoters Ltd (MAYURUNIQ.NS) is 7.05%.

	Range	Selected
Cost of equity	14.20% - 18.10%	16.15%
Tax rate	23.20% - 24.00%	23.60%
Cost of debt	6.60% - 7.50%	7.05%
WACC	14.1% - 18.1%	16.1%

WACC

MAYURUNIQ.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	1.1

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.20%	18.10%

Tax rate	23.20%	24.00%
Debt/Equity ratio	0	0
Cost of debt	6.60%	7.50%

After-tax WACC	14.1%	18.1%


Selected WACC	16.1%

MAYURUNIQ.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 MAYURUNIQ.NS:

cost_of_equity (16.15%) = 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.