NITINSPIN.NS WACC - Weighted Average Cost of Capital

The WACC of Nitin Spinners Ltd (NITINSPIN.NS) is 12.4%.

The Cost of Equity of Nitin Spinners Ltd (NITINSPIN.NS) is 16.15%.

The Cost of Debt of Nitin Spinners Ltd (NITINSPIN.NS) is 7.60%.

	Range	Selected
Cost of equity	14.80% - 17.50%	16.15%
Tax rate	25.90% - 29.70%	27.80%
Cost of debt	6.60% - 8.60%	7.60%
WACC	11.4% - 13.5%	12.4%

WACC

NITINSPIN.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.96	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.80%	17.50%

Tax rate	25.90%	29.70%
Debt/Equity ratio	0.54	0.54
Cost of debt	6.60%	8.60%

After-tax WACC	11.4%	13.5%


Selected WACC	12.4%

NITINSPIN.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 NITINSPIN.NS:

cost_of_equity (16.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.96) + 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.