ONMOBILE.NS WACC - Weighted Average Cost of Capital

The WACC of Onmobile Global Ltd (ONMOBILE.NS) is 15.7%.

The Cost of Equity of Onmobile Global Ltd (ONMOBILE.NS) is 16.10%.

The Cost of Debt of Onmobile Global Ltd (ONMOBILE.NS) is 8.85%.

	Range	Selected
Cost of equity	14.10% - 18.10%	16.10%
Tax rate	31.00% - 33.30%	32.15%
Cost of debt	7.00% - 10.70%	8.85%
WACC	13.8% - 17.7%	15.7%

WACC

ONMOBILE.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.87	1.1

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.10%	18.10%

Tax rate	31.00%	33.30%
Debt/Equity ratio	0.04	0.04
Cost of debt	7.00%	10.70%

After-tax WACC	13.8%	17.7%


Selected WACC	15.7%

ONMOBILE.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 ONMOBILE.NS:

cost_of_equity (16.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.87) + 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.