NIPPOBATRY.NS WACC - Weighted Average Cost of Capital

The WACC of Indo National Ltd (NIPPOBATRY.NS) is 17.0%.

The Cost of Equity of Indo National Ltd (NIPPOBATRY.NS) is 19.75%.

The Cost of Debt of Indo National Ltd (NIPPOBATRY.NS) is 7.25%.

	Range	Selected
Cost of equity	18.00% - 21.50%	19.75%
Tax rate	22.50% - 28.70%	25.60%
Cost of debt	7.00% - 7.50%	7.25%
WACC	15.6% - 18.3%	17.0%

WACC

NIPPOBATRY.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.34	1.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	18.00%	21.50%

Tax rate	22.50%	28.70%
Debt/Equity ratio	0.24	0.24
Cost of debt	7.00%	7.50%

After-tax WACC	15.6%	18.3%


Selected WACC	17.0%

NIPPOBATRY.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 NIPPOBATRY.NS:

cost_of_equity (19.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.34) + 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.