ORIENTALTL.NS
Oriental Trimex Ltd
Price:  
12.15 
INR
Volume:  
322,776
India | Construction Materials

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 13.05%.
The Cost of Debt of Oriental Trimex Ltd (ORIENTALTL.NS) is 23.35%.

RangeSelected
Cost of equity11.9% - 14.2%13.05%
Tax rate13.9% - 17.3%15.6%
Cost of debt7.0% - 39.7%23.35%
WACC11.5% - 15.5%13.5%
WACC

ORIENTALTL.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.610.68
Additional risk adjustments0.0%0.5%
Cost of equity11.9%14.2%
Tax rate13.9%17.3%
Debt/Equity ratio
0.070.07
Cost of debt7.0%39.7%
After-tax WACC11.5%15.5%
Selected WACC13.5%

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 (13.05%) = 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.