MGEL.NS WACC - Weighted Average Cost of Capital

The WACC of Mangalam Global Enterprise Ltd (MGEL.NS) is 13.1%.

The Cost of Equity of Mangalam Global Enterprise Ltd (MGEL.NS) is 15.60%.

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

	Range	Selected
Cost of equity	13.90% - 17.30%	15.60%
Tax rate	20.20% - 20.60%	20.40%
Cost of debt	10.20% - 10.50%	10.35%
WACC	12.0% - 14.3%	13.1%

WACC

MGEL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.85	1.02

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.90%	17.30%

Tax rate	20.20%	20.60%
Debt/Equity ratio	0.51	0.51
Cost of debt	10.20%	10.50%

After-tax WACC	12.0%	14.3%


Selected WACC	13.1%

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 (15.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.85) + 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.