ORIENTBELL.NS WACC - Weighted Average Cost of Capital

The WACC of Orient Bell Ltd (ORIENTBELL.NS) is 14.6%.

The Cost of Equity of Orient Bell Ltd (ORIENTBELL.NS) is 15.30%.

The Cost of Debt of Orient Bell Ltd (ORIENTBELL.NS) is 11.30%.

	Range	Selected
Cost of equity	13.80% - 16.80%	15.30%
Tax rate	22.50% - 28.00%	25.25%
Cost of debt	8.30% - 14.30%	11.30%
WACC	13.0% - 16.2%	14.6%

WACC

ORIENTBELL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.83	0.96

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.80%	16.80%

Tax rate	22.50%	28.00%
Debt/Equity ratio	0.12	0.12
Cost of debt	8.30%	14.30%

After-tax WACC	13.0%	16.2%


Selected WACC	14.6%

ORIENTBELL.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 ORIENTBELL.NS:

cost_of_equity (15.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.83) + 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.