OCCL.NS WACC - Weighted Average Cost of Capital

The WACC of Oriental Carbon & Chemicals Ltd (OCCL.NS) is 12.4%.

The Cost of Equity of Oriental Carbon & Chemicals Ltd (OCCL.NS) is 16.85%.

The Cost of Debt of Oriental Carbon & Chemicals Ltd (OCCL.NS) is 6.40%.

	Range	Selected
Cost of equity	15.10% - 18.60%	16.85%
Tax rate	21.30% - 25.10%	23.20%
Cost of debt	4.20% - 8.60%	6.40%
WACC	10.7% - 14.1%	12.4%

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	0.99	1.16

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.10%	18.60%

Tax rate	21.30%	25.10%
Debt/Equity ratio	0.6	0.6
Cost of debt	4.20%	8.60%

After-tax WACC	10.7%	14.1%


Selected WACC	12.4%

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 (16.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.99) + 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.