MITTAL.NS WACC - Weighted Average Cost of Capital

The WACC of Mittal Life Style Ltd (MITTAL.NS) is 11.9%.

The Cost of Equity of Mittal Life Style Ltd (MITTAL.NS) is 12.20%.

The Cost of Debt of Mittal Life Style Ltd (MITTAL.NS) is 7.50%.

	Range	Selected
Cost of equity	10.90% - 13.50%	12.20%
Tax rate	21.20% - 22.20%	21.70%
Cost of debt	7.50% - 7.50%	7.50%
WACC	10.7% - 13.1%	11.9%

WACC

MITTAL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.49	0.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	13.50%

Tax rate	21.20%	22.20%
Debt/Equity ratio	0.06	0.06
Cost of debt	7.50%	7.50%

After-tax WACC	10.7%	13.1%


Selected WACC	11.9%

MITTAL.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 MITTAL.NS:

cost_of_equity (12.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.49) + 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.