PDSMFL.NS WACC - Weighted Average Cost of Capital

The WACC of PDS Multinational Fashions Ltd (PDSMFL.NS) is 14.5%.

The Cost of Equity of PDS Multinational Fashions Ltd (PDSMFL.NS) is 15.55%.

The Cost of Debt of PDS Multinational Fashions Ltd (PDSMFL.NS) is 6.95%.

	Range	Selected
Cost of equity	13.30% - 17.80%	15.55%
Tax rate	10.90% - 11.80%	11.35%
Cost of debt	5.10% - 8.80%	6.95%
WACC	12.3% - 16.6%	14.5%

WACC

PDSMFL.NS WACC calculation

Category	Low	High

Long-term bond rate	7.5%	8.0%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.84	1.17

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.30%	17.80%

Tax rate	10.90%	11.80%
Debt/Equity ratio	0.13	0.13
Cost of debt	5.10%	8.80%

After-tax WACC	12.3%	16.6%


Selected WACC	14.5%

PDSMFL.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 PDSMFL.NS:

cost_of_equity (15.55%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (0.84) + 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.