PAGEIND.NS WACC - Weighted Average Cost of Capital

The WACC of Page Industries Ltd (PAGEIND.NS) is 13.3%.

The Cost of Equity of Page Industries Ltd (PAGEIND.NS) is 13.30%.

The Cost of Debt of Page Industries Ltd (PAGEIND.NS) is 16.40%.

	Range	Selected
Cost of equity	10.50% - 16.10%	13.30%
Tax rate	24.70% - 24.80%	24.75%
Cost of debt	7.50% - 25.30%	16.40%
WACC	10.5% - 16.1%	13.3%

WACC

PAGEIND.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.44	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	16.10%

Tax rate	24.70%	24.80%
Debt/Equity ratio	0	0
Cost of debt	7.50%	25.30%

After-tax WACC	10.5%	16.1%


Selected WACC	13.3%

PAGEIND.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 PAGEIND.NS:

cost_of_equity (13.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.44) + 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.