ORICONENT.NS WACC - Weighted Average Cost of Capital

The WACC of Oricon Enterprises Ltd (ORICONENT.NS) is 10.2%.

The Cost of Equity of Oricon Enterprises Ltd (ORICONENT.NS) is 10.20%.

The Cost of Debt of Oricon Enterprises Ltd (ORICONENT.NS) is 6.90%.

	Range	Selected
Cost of equity	9.20% - 11.20%	10.20%
Tax rate	30.60% - 44.30%	37.45%
Cost of debt	6.30% - 7.50%	6.90%
WACC	9.2% - 11.1%	10.2%

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	0.29	0.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.20%	11.20%

Tax rate	30.60%	44.30%
Debt/Equity ratio	0.01	0.01
Cost of debt	6.30%	7.50%

After-tax WACC	9.2%	11.1%


Selected WACC	10.2%

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 (10.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.29) + 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.