NAHARINDUS.NS WACC - Weighted Average Cost of Capital

The WACC of Nahar Industrial Enterprises Ltd (NAHARINDUS.NS) is 12.7%.

The Cost of Equity of Nahar Industrial Enterprises Ltd (NAHARINDUS.NS) is 18.35%.

The Cost of Debt of Nahar Industrial Enterprises Ltd (NAHARINDUS.NS) is 9.95%.

	Range	Selected
Cost of equity	16.90% - 19.80%	18.35%
Tax rate	22.50% - 24.70%	23.60%
Cost of debt	7.80% - 12.10%	9.95%
WACC	11.2% - 14.2%	12.7%

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	1.21	1.28

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.90%	19.80%

Tax rate	22.50%	24.70%
Debt/Equity ratio	1.11	1.11
Cost of debt	7.80%	12.10%

After-tax WACC	11.2%	14.2%


Selected WACC	12.7%

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 (18.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.21) + 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.