MIRZAINT.NS WACC - Weighted Average Cost of Capital

The WACC of Mirza International Ltd (MIRZAINT.NS) is 15.1%.

The Cost of Equity of Mirza International Ltd (MIRZAINT.NS) is 15.50%.

The Cost of Debt of Mirza International Ltd (MIRZAINT.NS) is 14.10%.

	Range	Selected
Cost of equity	14.00% - 17.00%	15.50%
Tax rate	26.50% - 26.90%	26.70%
Cost of debt	12.10% - 16.10%	14.10%
WACC	13.6% - 16.6%	15.1%

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	0.86	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.00%	17.00%

Tax rate	26.50%	26.90%
Debt/Equity ratio	0.08	0.08
Cost of debt	12.10%	16.10%

After-tax WACC	13.6%	16.6%


Selected WACC	15.1%

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 (15.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.86) + 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.