PENINLAND.NS WACC - Weighted Average Cost of Capital

The WACC of Peninsula Land Ltd (PENINLAND.NS) is 15.2%.

The Cost of Equity of Peninsula Land Ltd (PENINLAND.NS) is 16.35%.

The Cost of Debt of Peninsula Land Ltd (PENINLAND.NS) is 12.55%.

	Range	Selected
Cost of equity	11.10% - 21.60%	16.35%
Tax rate	0.90% - 11.70%	6.30%
Cost of debt	6.50% - 18.60%	12.55%
WACC	10.0% - 20.4%	15.2%

WACC

PENINLAND.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.51	1.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.10%	21.60%

Tax rate	0.90%	11.70%
Debt/Equity ratio	0.3	0.3
Cost of debt	6.50%	18.60%

After-tax WACC	10.0%	20.4%


Selected WACC	15.2%

PENINLAND.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 PENINLAND.NS:

cost_of_equity (16.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.51) + 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.