NAVKARCORP.NS WACC - Weighted Average Cost of Capital

The WACC of Navkar Corporation Ltd (NAVKARCORP.NS) is 11.3%.

The Cost of Equity of Navkar Corporation Ltd (NAVKARCORP.NS) is 11.90%.

The Cost of Debt of Navkar Corporation Ltd (NAVKARCORP.NS) is 10.60%.

	Range	Selected
Cost of equity	10.10% - 13.70%	11.90%
Tax rate	25.70% - 34.60%	30.15%
Cost of debt	8.10% - 13.10%	10.60%
WACC	9.5% - 13.0%	11.3%

WACC

NAVKARCORP.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.39	0.63

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.10%	13.70%

Tax rate	25.70%	34.60%
Debt/Equity ratio	0.15	0.15
Cost of debt	8.10%	13.10%

After-tax WACC	9.5%	13.0%


Selected WACC	11.3%

NAVKARCORP.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 NAVKARCORP.NS:

cost_of_equity (11.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.39) + 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.