ONELIFECAP.NS WACC - Weighted Average Cost of Capital

The WACC of Onelife Capital Advisors Ltd (ONELIFECAP.NS) is 10.5%.

The Cost of Equity of Onelife Capital Advisors Ltd (ONELIFECAP.NS) is 20.30%.

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

	Range	Selected
Cost of equity	16.80% - 23.80%	20.30%
Tax rate	30.00% - 30.00%	30.00%
Cost of debt	7.00% - 8.00%	7.50%
WACC	9.1% - 12.0%	10.5%

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	1.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.80%	23.80%

Tax rate	30.00%	30.00%
Debt/Equity ratio	1.87	1.87
Cost of debt	7.00%	8.00%

After-tax WACC	9.1%	12.0%


Selected WACC	10.5%

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 (20.30%) = 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.