OSWALAGRO.NS WACC - Weighted Average Cost of Capital

The WACC of Oswal Agro Mills Ltd (OSWALAGRO.NS) is 7.4%.

The Cost of Equity of Oswal Agro Mills Ltd (OSWALAGRO.NS) is 11.45%.

The Cost of Debt of Oswal Agro Mills Ltd (OSWALAGRO.NS) is 5.75%.

	Range	Selected
Cost of equity	9.70% - 13.20%	11.45%
Tax rate	35.00% - 45.40%	40.20%
Cost of debt	4.00% - 7.50%	5.75%
WACC	6.1% - 8.6%	7.4%

WACC

OSWALAGRO.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.34	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	13.20%

Tax rate	35.00%	45.40%
Debt/Equity ratio	1	1
Cost of debt	4.00%	7.50%

After-tax WACC	6.1%	8.6%


Selected WACC	7.4%

OSWALAGRO.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 OSWALAGRO.NS:

cost_of_equity (11.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.34) + 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.