ORICONENT.NS WACC - Weighted Average Cost of Capital

The WACC of Oricon Enterprises Ltd (ORICONENT.NS) is 10.5%.

The Cost of Equity of Oricon Enterprises Ltd (ORICONENT.NS) is 11.45%.

The Cost of Debt of Oricon Enterprises Ltd (ORICONENT.NS) is 6.20%.

	Range	Selected
Cost of equity	9.70% - 13.20%	11.45%
Tax rate	17.20% - 28.70%	22.95%
Cost of debt	5.40% - 7.00%	6.20%
WACC	8.9% - 12.0%	10.5%

WACC

ORICONENT.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.34	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	13.20%

Tax rate	17.20%	28.70%
Debt/Equity ratio	0.17	0.17
Cost of debt	5.40%	7.00%

After-tax WACC	8.9%	12.0%


Selected WACC	10.5%

ORICONENT.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 ORICONENT.NS:

cost_of_equity (11.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.34) + 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.