NAHARINDUS.NS WACC - Weighted Average Cost of Capital

The WACC of Nahar Industrial Enterprises Ltd (NAHARINDUS.NS) is 9.9%.

The Cost of Equity of Nahar Industrial Enterprises Ltd (NAHARINDUS.NS) is 14.70%.

The Cost of Debt of Nahar Industrial Enterprises Ltd (NAHARINDUS.NS) is 9.15%.

	Range	Selected
Cost of equity	12.00% - 17.40%	14.70%
Tax rate	22.50% - 24.70%	23.60%
Cost of debt	7.80% - 10.50%	9.15%
WACC	8.3% - 11.5%	9.9%

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	0.62	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.00%	17.40%

Tax rate	22.50%	24.70%
Debt/Equity ratio	1.65	1.65
Cost of debt	7.80%	10.50%

After-tax WACC	8.3%	11.5%


Selected WACC	9.9%

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 (14.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.62) + 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.