NCC.NS WACC - Weighted Average Cost of Capital

The WACC of NCC Ltd (NCC.NS) is 15.6%.

The Cost of Equity of NCC Ltd (NCC.NS) is 14.90%.

The Cost of Debt of NCC Ltd (NCC.NS) is 28.95%.

	Range	Selected
Cost of equity	13.20% - 16.60%	14.90%
Tax rate	25.00% - 26.90%	25.95%
Cost of debt	10.00% - 47.90%	28.95%
WACC	12.6% - 18.6%	15.6%

WACC

NCC.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.77	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.20%	16.60%

Tax rate	25.00%	26.90%
Debt/Equity ratio	0.12	0.12
Cost of debt	10.00%	47.90%

After-tax WACC	12.6%	18.6%


Selected WACC	15.6%

NCC.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 NCC.NS:

cost_of_equity (14.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.77) + 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.