ORIENTALTL.NS WACC - Weighted Average Cost of Capital

The WACC of Oriental Trimex Ltd (ORIENTALTL.NS) is 13.5%.

The Cost of Equity of Oriental Trimex Ltd (ORIENTALTL.NS) is 13.00%.

The Cost of Debt of Oriental Trimex Ltd (ORIENTALTL.NS) is 23.35%.

	Range	Selected
Cost of equity	11.90% - 14.10%	13.00%
Tax rate	13.90% - 17.30%	15.60%
Cost of debt	7.00% - 39.70%	23.35%
WACC	11.5% - 15.5%	13.5%

WACC

ORIENTALTL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.61	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	14.10%

Tax rate	13.90%	17.30%
Debt/Equity ratio	0.08	0.08
Cost of debt	7.00%	39.70%

After-tax WACC	11.5%	15.5%


Selected WACC	13.5%

ORIENTALTL.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 ORIENTALTL.NS:

cost_of_equity (13.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.61) + 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.