MINDACORP.NS WACC - Weighted Average Cost of Capital

The WACC of Minda Corporation Ltd (MINDACORP.NS) is 16.7%.

The Cost of Equity of Minda Corporation Ltd (MINDACORP.NS) is 17.30%.

The Cost of Debt of Minda Corporation Ltd (MINDACORP.NS) is 6.45%.

	Range	Selected
Cost of equity	16.00% - 18.60%	17.30%
Tax rate	18.00% - 23.50%	20.75%
Cost of debt	5.30% - 7.60%	6.45%
WACC	15.5% - 18.0%	16.7%

WACC

MINDACORP.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.09	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.00%	18.60%

Tax rate	18.00%	23.50%
Debt/Equity ratio	0.05	0.05
Cost of debt	5.30%	7.60%

After-tax WACC	15.5%	18.0%


Selected WACC	16.7%

MINDACORP.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 MINDACORP.NS:

cost_of_equity (17.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.09) + 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.