MIRZAINT.NS WACC - Weighted Average Cost of Capital

The WACC of Mirza International Ltd (MIRZAINT.NS) is 15.0%.

The Cost of Equity of Mirza International Ltd (MIRZAINT.NS) is 15.15%.

The Cost of Debt of Mirza International Ltd (MIRZAINT.NS) is 16.35%.

	Range	Selected
Cost of equity	13.70% - 16.60%	15.15%
Tax rate	26.50% - 26.90%	26.70%
Cost of debt	7.00% - 25.70%	16.35%
WACC	13.4% - 16.7%	15.0%

WACC

MIRZAINT.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.83	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.70%	16.60%

Tax rate	26.50%	26.90%
Debt/Equity ratio	0.04	0.04
Cost of debt	7.00%	25.70%

After-tax WACC	13.4%	16.7%


Selected WACC	15.0%

MIRZAINT.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 MIRZAINT.NS:

cost_of_equity (15.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.83) + 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.