NAHARINDUS.NS WACC - Weighted Average Cost of Capital

The WACC of Nahar Industrial Enterprises Ltd (NAHARINDUS.NS) is 13.1%.

The Cost of Equity of Nahar Industrial Enterprises Ltd (NAHARINDUS.NS) is 18.10%.

The Cost of Debt of Nahar Industrial Enterprises Ltd (NAHARINDUS.NS) is 9.90%.

	Range	Selected
Cost of equity	16.80% - 19.40%	18.10%
Tax rate	22.90% - 25.20%	24.05%
Cost of debt	7.70% - 12.10%	9.90%
WACC	11.6% - 14.5%	13.1%

WACC

NAHARINDUS.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	1.24

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.80%	19.40%

Tax rate	22.90%	25.20%
Debt/Equity ratio	0.9	0.9
Cost of debt	7.70%	12.10%

After-tax WACC	11.6%	14.5%


Selected WACC	13.1%

NAHARINDUS.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 NAHARINDUS.NS:

cost_of_equity (18.10%) = 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.