NAHARPOLY.NS WACC - Weighted Average Cost of Capital

The WACC of Nahar Poly Films Ltd (NAHARPOLY.NS) is 12.4%.

The Cost of Equity of Nahar Poly Films Ltd (NAHARPOLY.NS) is 13.75%.

The Cost of Debt of Nahar Poly Films Ltd (NAHARPOLY.NS) is 9.10%.

	Range	Selected
Cost of equity	12.20% - 15.30%	13.75%
Tax rate	25.10% - 25.50%	25.30%
Cost of debt	9.10% - 9.10%	9.10%
WACC	11.1% - 13.6%	12.4%

WACC

NAHARPOLY.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.64	0.8

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.20%	15.30%

Tax rate	25.10%	25.50%
Debt/Equity ratio	0.25	0.25
Cost of debt	9.10%	9.10%

After-tax WACC	11.1%	13.6%


Selected WACC	12.4%

NAHARPOLY.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 NAHARPOLY.NS:

cost_of_equity (13.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.64) + 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.