NCLIND.NS WACC - Weighted Average Cost of Capital

The WACC of Ncl Industries Ltd (NCLIND.NS) is 13.5%.

The Cost of Equity of Ncl Industries Ltd (NCLIND.NS) is 16.60%.

The Cost of Debt of Ncl Industries Ltd (NCLIND.NS) is 7.70%.

	Range	Selected
Cost of equity	15.20% - 18.00%	16.60%
Tax rate	36.00% - 38.30%	37.15%
Cost of debt	7.50% - 7.90%	7.70%
WACC	12.5% - 14.5%	13.5%

WACC

NCLIND.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1	1.09

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.20%	18.00%

Tax rate	36.00%	38.30%
Debt/Equity ratio	0.36	0.36
Cost of debt	7.50%	7.90%

After-tax WACC	12.5%	14.5%


Selected WACC	13.5%

NCLIND.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 NCLIND.NS:

cost_of_equity (16.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1) + 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.