NBCC.NS WACC - Weighted Average Cost of Capital

The WACC of NBCC (India) Ltd (NBCC.NS) is 15.2%.

The Cost of Equity of NBCC (India) Ltd (NBCC.NS) is 15.25%.

The Cost of Debt of NBCC (India) Ltd (NBCC.NS) is 184.65%.

	Range	Selected
Cost of equity	13.90% - 16.60%	15.25%
Tax rate	24.90% - 25.50%	25.20%
Cost of debt	7.50% - 361.80%	184.65%
WACC	13.9% - 16.6%	15.2%

WACC

NBCC.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.84	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.90%	16.60%

Tax rate	24.90%	25.50%
Debt/Equity ratio	0	0
Cost of debt	7.50%	361.80%

After-tax WACC	13.9%	16.6%


Selected WACC	15.2%

NBCC.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 NBCC.NS:

cost_of_equity (15.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.84) + 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.