MIRCELECTR.NS WACC - Weighted Average Cost of Capital

The WACC of MIRC Electronics Ltd (MIRCELECTR.NS) is 14.8%.

The Cost of Equity of MIRC Electronics Ltd (MIRCELECTR.NS) is 15.35%.

The Cost of Debt of MIRC Electronics Ltd (MIRCELECTR.NS) is 17.10%.

	Range	Selected
Cost of equity	12.60% - 18.10%	15.35%
Tax rate	30.00% - 30.00%	30.00%
Cost of debt	15.60% - 18.60%	17.10%
WACC	12.3% - 17.2%	14.8%

WACC

MIRCELECTR.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.69	1.1

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.60%	18.10%

Tax rate	30.00%	30.00%
Debt/Equity ratio	0.21	0.21
Cost of debt	15.60%	18.60%

After-tax WACC	12.3%	17.2%


Selected WACC	14.8%

MIRCELECTR.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 MIRCELECTR.NS:

cost_of_equity (15.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.69) + 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.