ORIENTLTD.NS WACC - Weighted Average Cost of Capital

The WACC of Orient Press Ltd (ORIENTLTD.NS) is 12.7%.

The Cost of Equity of Orient Press Ltd (ORIENTLTD.NS) is 14.00%.

The Cost of Debt of Orient Press Ltd (ORIENTLTD.NS) is 14.65%.

	Range	Selected
Cost of equity	12.40% - 15.60%	14.00%
Tax rate	21.40% - 25.70%	23.55%
Cost of debt	10.70% - 18.60%	14.65%
WACC	10.6% - 14.8%	12.7%

WACC

ORIENTLTD.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.66	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.40%	15.60%

Tax rate	21.40%	25.70%
Debt/Equity ratio	0.84	0.84
Cost of debt	10.70%	18.60%

After-tax WACC	10.6%	14.8%


Selected WACC	12.7%

ORIENTLTD.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 ORIENTLTD.NS:

cost_of_equity (14.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.66) + 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.