NACLIND.NS WACC - Weighted Average Cost of Capital

The WACC of NACL Industries Ltd (NACLIND.NS) is 13.9%.

The Cost of Equity of NACL Industries Ltd (NACLIND.NS) is 15.20%.

The Cost of Debt of NACL Industries Ltd (NACLIND.NS) is 10.40%.

	Range	Selected
Cost of equity	12.50% - 17.90%	15.20%
Tax rate	24.80% - 26.30%	25.55%
Cost of debt	7.00% - 13.80%	10.40%
WACC	11.2% - 16.5%	13.9%

WACC

NACLIND.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.68	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.50%	17.90%

Tax rate	24.80%	26.30%
Debt/Equity ratio	0.22	0.22
Cost of debt	7.00%	13.80%

After-tax WACC	11.2%	16.5%


Selected WACC	13.9%

NACLIND.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 NACLIND.NS:

cost_of_equity (15.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.68) + 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.