ORBTEXP.NS WACC - Weighted Average Cost of Capital

The WACC of Orbit Exports Ltd (ORBTEXP.NS) is 14.8%.

The Cost of Equity of Orbit Exports Ltd (ORBTEXP.NS) is 15.15%.

The Cost of Debt of Orbit Exports Ltd (ORBTEXP.NS) is 7.00%.

	Range	Selected
Cost of equity	13.70% - 16.60%	15.15%
Tax rate	22.00% - 22.60%	22.30%
Cost of debt	6.50% - 7.50%	7.00%
WACC	13.4% - 16.2%	14.8%

WACC

ORBTEXP.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.82	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.70%	16.60%

Tax rate	22.00%	22.60%
Debt/Equity ratio	0.03	0.03
Cost of debt	6.50%	7.50%

After-tax WACC	13.4%	16.2%


Selected WACC	14.8%

ORBTEXP.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 ORBTEXP.NS:

cost_of_equity (15.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.82) + 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.