OCCL.NS WACC - Weighted Average Cost of Capital

The WACC of Oriental Carbon & Chemicals Ltd (OCCL.NS) is 12.7%.

The Cost of Equity of Oriental Carbon & Chemicals Ltd (OCCL.NS) is 18.65%.

The Cost of Debt of Oriental Carbon & Chemicals Ltd (OCCL.NS) is 6.60%.

	Range	Selected
Cost of equity	16.20% - 21.10%	18.65%
Tax rate	21.30% - 24.50%	22.90%
Cost of debt	4.90% - 8.30%	6.60%
WACC	10.8% - 14.6%	12.7%

WACC

OCCL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.13	1.42

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.20%	21.10%

Tax rate	21.30%	24.50%
Debt/Equity ratio	0.79	0.79
Cost of debt	4.90%	8.30%

After-tax WACC	10.8%	14.6%


Selected WACC	12.7%

OCCL.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 OCCL.NS:

cost_of_equity (18.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.13) + 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.