ORIENTALTL.NS WACC - Weighted Average Cost of Capital

The WACC of Oriental Trimex Ltd (ORIENTALTL.NS) is 15.9%.

The Cost of Equity of Oriental Trimex Ltd (ORIENTALTL.NS) is 15.75%.

The Cost of Debt of Oriental Trimex Ltd (ORIENTALTL.NS) is 23.00%.

	Range	Selected
Cost of equity	13.80% - 17.70%	15.75%
Tax rate	14.20% - 20.00%	17.10%
Cost of debt	7.50% - 38.50%	23.00%
WACC	13.5% - 18.3%	15.9%

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	0.84	1.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.80%	17.70%

Tax rate	14.20%	20.00%
Debt/Equity ratio	0.05	0.05
Cost of debt	7.50%	38.50%

After-tax WACC	13.5%	18.3%


Selected WACC	15.9%

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 (15.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.84) + 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.