NLCINDIA.NS WACC - Weighted Average Cost of Capital

The WACC of NLC India Ltd (NLCINDIA.NS) is 11.6%.

The Cost of Equity of NLC India Ltd (NLCINDIA.NS) is 15.65%.

The Cost of Debt of NLC India Ltd (NLCINDIA.NS) is 9.95%.

	Range	Selected
Cost of equity	12.80% - 18.50%	15.65%
Tax rate	36.90% - 39.20%	38.05%
Cost of debt	7.80% - 12.10%	9.95%
WACC	9.5% - 13.8%	11.6%

WACC

NLCINDIA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.72	1.14

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.80%	18.50%

Tax rate	36.90%	39.20%
Debt/Equity ratio	0.73	0.73
Cost of debt	7.80%	12.10%

After-tax WACC	9.5%	13.8%


Selected WACC	11.6%

NLCINDIA.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 NLCINDIA.NS:

cost_of_equity (15.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.72) + 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.