ORIENTABRA.NS WACC - Weighted Average Cost of Capital

The WACC of Orient Abrasives Ltd (ORIENTABRA.NS) is 14.8%.

The Cost of Equity of Orient Abrasives Ltd (ORIENTABRA.NS) is 15.05%.

The Cost of Debt of Orient Abrasives Ltd (ORIENTABRA.NS) is 9.20%.

	Range	Selected
Cost of equity	13.60% - 16.50%	15.05%
Tax rate	21.40% - 23.00%	22.20%
Cost of debt	8.70% - 9.70%	9.20%
WACC	13.4% - 16.2%	14.8%

WACC

ORIENTABRA.NS WACC calculation

Category	Low	High

Long-term bond rate	7.2%	7.7%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.73	0.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.60%	16.50%

Tax rate	21.40%	23.00%
Debt/Equity ratio	0.04	0.04
Cost of debt	8.70%	9.70%

After-tax WACC	13.4%	16.2%


Selected WACC	14.8%

ORIENTABRA.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 ORIENTABRA.NS:

cost_of_equity (15.05%) = risk_free_rate (7.45%) + equity_risk_premium (9.30%) * adjusted_beta (0.73) + 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.