NACLIND.NS WACC - Weighted Average Cost of Capital

The WACC of NACL Industries Ltd (NACLIND.NS) is 13.8%.

The Cost of Equity of NACL Industries Ltd (NACLIND.NS) is 13.90%.

The Cost of Debt of NACL Industries Ltd (NACLIND.NS) is 18.75%.

	Range	Selected
Cost of equity	11.40% - 16.40%	13.90%
Tax rate	26.30% - 27.90%	27.10%
Cost of debt	10.60% - 26.90%	18.75%
WACC	10.8% - 16.9%	13.8%

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	0.55	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.40%	16.40%

Tax rate	26.30%	27.90%
Debt/Equity ratio	0.2	0.2
Cost of debt	10.60%	26.90%

After-tax WACC	10.8%	16.9%


Selected WACC	13.8%

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 (13.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.55) + 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.