ONELIFECAP.NS WACC - Weighted Average Cost of Capital

The WACC of Onelife Capital Advisors Ltd (ONELIFECAP.NS) is 10.4%.

The Cost of Equity of Onelife Capital Advisors Ltd (ONELIFECAP.NS) is 20.50%.

The Cost of Debt of Onelife Capital Advisors Ltd (ONELIFECAP.NS) is 7.50%.

	Range	Selected
Cost of equity	16.90% - 24.10%	20.50%
Tax rate	30.00% - 30.00%	30.00%
Cost of debt	7.00% - 8.00%	7.50%
WACC	9.0% - 11.9%	10.4%

WACC

ONELIFECAP.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.2	1.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.90%	24.10%

Tax rate	30.00%	30.00%
Debt/Equity ratio	1.93	1.93
Cost of debt	7.00%	8.00%

After-tax WACC	9.0%	11.9%


Selected WACC	10.4%

ONELIFECAP.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 ONELIFECAP.NS:

cost_of_equity (20.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.2) + 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.