NDTV.NS WACC - Weighted Average Cost of Capital

The WACC of New Delhi Television Ltd (NDTV.NS) is 13.0%.

The Cost of Equity of New Delhi Television Ltd (NDTV.NS) is 13.50%.

The Cost of Debt of New Delhi Television Ltd (NDTV.NS) is 9.20%.

	Range	Selected
Cost of equity	11.00% - 16.00%	13.50%
Tax rate	9.70% - 13.60%	11.65%
Cost of debt	7.00% - 11.40%	9.20%
WACC	10.6% - 15.4%	13.0%

WACC

NDTV.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.5	0.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.00%	16.00%

Tax rate	9.70%	13.60%
Debt/Equity ratio	0.11	0.11
Cost of debt	7.00%	11.40%

After-tax WACC	10.6%	15.4%


Selected WACC	13.0%

NDTV.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 NDTV.NS:

cost_of_equity (13.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.5) + 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.