OMAXE.NS WACC - Weighted Average Cost of Capital

The WACC of Omaxe Ltd (OMAXE.NS) is 18.6%.

The Cost of Equity of Omaxe Ltd (OMAXE.NS) is 11.85%.

The Cost of Debt of Omaxe Ltd (OMAXE.NS) is 33.80%.

	Range	Selected
Cost of equity	10.60% - 13.10%	11.85%
Tax rate	18.70% - 21.00%	19.85%
Cost of debt	7.00% - 60.60%	33.80%
WACC	8.4% - 28.7%	18.6%

WACC

OMAXE.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.45	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	13.10%

Tax rate	18.70%	21.00%
Debt/Equity ratio	0.81	0.81
Cost of debt	7.00%	60.60%

After-tax WACC	8.4%	28.7%


Selected WACC	18.6%

OMAXE.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 OMAXE.NS:

cost_of_equity (11.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.45) + 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.