NAGAFERT.NS WACC - Weighted Average Cost of Capital

The WACC of Nagarjuna Fertilizers and Chemicals Ltd (NAGAFERT.NS) is 9.0%.

The Cost of Equity of Nagarjuna Fertilizers and Chemicals Ltd (NAGAFERT.NS) is 29.95%.

The Cost of Debt of Nagarjuna Fertilizers and Chemicals Ltd (NAGAFERT.NS) is 7.70%.

	Range	Selected
Cost of equity	16.80% - 43.10%	29.95%
Tax rate	5.20% - 6.20%	5.70%
Cost of debt	7.50% - 7.90%	7.70%
WACC	7.8% - 10.2%	9.0%

WACC

NAGAFERT.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.19	3.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.80%	43.10%

Tax rate	5.20%	6.20%
Debt/Equity ratio	11.83	11.83
Cost of debt	7.50%	7.90%

After-tax WACC	7.8%	10.2%


Selected WACC	9.0%

NAGAFERT.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 NAGAFERT.NS:

cost_of_equity (29.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.19) + 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.