MGEL.NS
Mangalam Global Enterprise Ltd
Price:  
15.49 
INR
Volume:  
1,343,605
India | Food Products

MGEL.NS WACC - Weighted Average Cost of Capital

The WACC of Mangalam Global Enterprise Ltd (MGEL.NS) is 13.2%.

The Cost of Equity of Mangalam Global Enterprise Ltd (MGEL.NS) is 15.35%.
The Cost of Debt of Mangalam Global Enterprise Ltd (MGEL.NS) is 10.35%.

RangeSelected
Cost of equity13.8% - 16.9%15.35%
Tax rate20.2% - 20.6%20.4%
Cost of debt10.2% - 10.5%10.35%
WACC12.0% - 14.3%13.2%
WACC

MGEL.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.830.98
Additional risk adjustments0.0%0.5%
Cost of equity13.8%16.9%
Tax rate20.2%20.6%
Debt/Equity ratio
0.450.45
Cost of debt10.2%10.5%
After-tax WACC12.0%14.3%
Selected WACC13.2%

MGEL.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 MGEL.NS:

cost_of_equity (15.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.83) + 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.