MRO-TEK.NS WACC - Weighted Average Cost of Capital

The WACC of MRO-TEK Reality Ltd (MRO-TEK.NS) is 13.3%.

The Cost of Equity of MRO-TEK Reality Ltd (MRO-TEK.NS) is 15.85%.

The Cost of Debt of MRO-TEK Reality Ltd (MRO-TEK.NS) is 11.30%.

	Range	Selected
Cost of equity	14.00% - 17.70%	15.85%
Tax rate	3.70% - 5.40%	4.55%
Cost of debt	10.50% - 12.10%	11.30%
WACC	12.0% - 14.5%	13.3%

WACC

MRO-TEK.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	1.06

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.00%	17.70%

Tax rate	3.70%	5.40%
Debt/Equity ratio	1.02	1.02
Cost of debt	10.50%	12.10%

After-tax WACC	12.0%	14.5%


Selected WACC	13.3%

MRO-TEK.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 MRO-TEK.NS:

cost_of_equity (15.85%) = 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.