MIDHANI.NS WACC - Weighted Average Cost of Capital

The WACC of Mishra Dhatu Nigam Ltd (MIDHANI.NS) is 14.1%.

The Cost of Equity of Mishra Dhatu Nigam Ltd (MIDHANI.NS) is 14.60%.

The Cost of Debt of Mishra Dhatu Nigam Ltd (MIDHANI.NS) is 8.25%.

	Range	Selected
Cost of equity	12.30% - 16.90%	14.60%
Tax rate	27.40% - 28.50%	27.95%
Cost of debt	7.90% - 8.60%	8.25%
WACC	11.9% - 16.2%	14.1%

WACC

MIDHANI.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.65	0.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.30%	16.90%

Tax rate	27.40%	28.50%
Debt/Equity ratio	0.07	0.07
Cost of debt	7.90%	8.60%

After-tax WACC	11.9%	16.2%


Selected WACC	14.1%

MIDHANI.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 MIDHANI.NS:

cost_of_equity (14.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.65) + 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.