NATNLSTEEL.NS WACC - Weighted Average Cost of Capital
The WACC of National Steel and Agro Industries Ltd (NATNLSTEEL.NS) is 7.3%.
| Range | Selected | |
| Cost of equity | 65.0% - 532.5% | 298.75% |
| Tax rate | 18.3% - 24.2% | 21.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.8% - 9.8% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 7 | 56.35 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 65.0% | 532.5% |
| Tax rate | 18.3% | 24.2% |
| Debt/Equity ratio | 87.46 | 87.46 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.8% | 9.8% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NATNLSTEEL.NS | National Steel and Agro Industries Ltd | 87.46 | -1.58 | -0.02 |
| 511672.BO | Scan Steels Ltd | 0.53 | -0.06 | -0.05 |
| GOODLUCK.NS | Goodluck India Ltd | 0.2 | 1.84 | 1.6 |
| HITECH.NS | Hi-Tech Pipes Ltd | 0.21 | 1.66 | 1.43 |
| ISMTLTD.NS | ISMT Ltd | 0.05 | 1.14 | 1.1 |
| KAMDHENU.NS | Kamdhenu Ltd | 0 | 1.58 | 1.57 |
| MSPL.NS | MSP Steel & Power Ltd | 0.5 | 1.93 | 1.39 |
| ROHITFERRO.NS | Rohit Ferro-Tech Ltd | 8.1 | 1.69 | 0.23 |
| UTTAMSTL.NS | Uttam Galva Steels Ltd | 157.52 | 1.56 | 0.01 |
| VISASTEEL.NS | Visa Steel Ltd | 3.81 | -0.3 | -0.07 |
| Low | High | |
| Unlevered beta | 0.14 | 1.22 |
| Relevered beta | 9.96 | 83.61 |
| Adjusted relevered beta | 7 | 56.35 |
NATNLSTEEL.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 NATNLSTEEL.NS:
cost_of_equity (298.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (7) + 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.