MINDAIND.NS WACC - Weighted Average Cost of Capital

The WACC of Minda Industries Ltd (MINDAIND.NS) is 12.9%.

The Cost of Equity of Minda Industries Ltd (MINDAIND.NS) is 13.15%.

The Cost of Debt of Minda Industries Ltd (MINDAIND.NS) is 7.85%.

	Range	Selected
Cost of equity	11.90% - 14.40%	13.15%
Tax rate	29.60% - 30.00%	29.80%
Cost of debt	7.40% - 8.30%	7.85%
WACC	11.7% - 14.2%	12.9%

WACC

MINDAIND.NS WACC calculation

Category	Low	High

Long-term bond rate	7.4%	7.9%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.64	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	14.40%

Tax rate	29.60%	30.00%
Debt/Equity ratio	0.03	0.03
Cost of debt	7.40%	8.30%

After-tax WACC	11.7%	14.2%


Selected WACC	12.9%

MINDAIND.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 MINDAIND.NS:

cost_of_equity (13.15%) = risk_free_rate (7.65%) + equity_risk_premium (7.40%) * adjusted_beta (0.64) + 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.