OMFURN.NS WACC - Weighted Average Cost of Capital

The WACC of Omfurn India Ltd (OMFURN.NS) is 12.3%.

The Cost of Equity of Omfurn India Ltd (OMFURN.NS) is 12.65%.

The Cost of Debt of Omfurn India Ltd (OMFURN.NS) is 11.35%.

	Range	Selected
Cost of equity	10.90% - 14.40%	12.65%
Tax rate	15.60% - 22.00%	18.80%
Cost of debt	9.10% - 13.60%	11.35%
WACC	10.5% - 14.0%	12.3%

WACC

OMFURN.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.49	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	14.40%

Tax rate	15.60%	22.00%
Debt/Equity ratio	0.13	0.13
Cost of debt	9.10%	13.60%

After-tax WACC	10.5%	14.0%


Selected WACC	12.3%

OMFURN.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 OMFURN.NS:

cost_of_equity (12.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.49) + 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.