NITINFIRE.NS WACC - Weighted Average Cost of Capital
The WACC of Nitin Fire Protection Industries Ltd (NITINFIRE.NS) is 19.6%.
| Range | Selected | |
| Cost of equity | 41.5% - 56.1% | 48.8% |
| Tax rate | 1.9% - 3.2% | 2.55% |
| Cost of debt | 10.9% - 24.3% | 17.6% |
| WACC | 13.1% - 26.1% | 19.6% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 6.9% | 7.9% |
| Adjusted beta | 4.99 | 6.08 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 41.5% | 56.1% |
| Tax rate | 1.9% | 3.2% |
| Debt/Equity ratio | 11.83 | 11.83 |
| Cost of debt | 10.9% | 24.3% |
| After-tax WACC | 13.1% | 26.1% |
| Selected WACC | 19.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NITINFIRE.NS | Nitin Fire Protection Industries Ltd | 11.83 | 0.92 | 0.07 |
| 500068.BO | DISA India Ltd | 0 | 0.75 | 0.75 |
| 505872.BO | WPIL Ltd | 0.05 | 1.21 | 1.15 |
| 517417.BO | Patels Airtemp (India) Ltd | 0.34 | 0.74 | 0.55 |
| ADORWELD.NS | Ador Welding Ltd | 0.03 | 0.95 | 0.92 |
| ELGIRUBCO.NS | ELGI Rubber Co Ltd | 0.98 | 2.06 | 1.05 |
| HONDAPOWER.NS | Honda India Power Products Ltd | 0 | 1.42 | 1.42 |
| NRBBEARING.NS | NRB Bearings Ltd | 0.07 | 1.18 | 1.11 |
| TRF.NS | TRF Ltd | 0.28 | 1.93 | 1.51 |
| Low | High | |
| Unlevered beta | 0.95 | 1.1 |
| Relevered beta | 6.96 | 8.58 |
| Adjusted relevered beta | 4.99 | 6.08 |
NITINFIRE.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 NITINFIRE.NS:
cost_of_equity (48.80%) = risk_free_rate (7.15%) + equity_risk_premium (7.40%) * adjusted_beta (4.99) + 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.