PGHH.NS WACC - Weighted Average Cost of Capital

The WACC of Procter & Gamble Hygiene and Health Care Ltd (PGHH.NS) is 14.2%.

The Cost of Equity of Procter & Gamble Hygiene and Health Care Ltd (PGHH.NS) is 14.15%.

The Cost of Debt of Procter & Gamble Hygiene and Health Care Ltd (PGHH.NS) is 23.05%.

	Range	Selected
Cost of equity	12.20% - 16.10%	14.15%
Tax rate	26.30% - 26.50%	26.40%
Cost of debt	7.50% - 38.60%	23.05%
WACC	12.2% - 16.1%	14.2%

WACC

PGHH.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.64	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.20%	16.10%

Tax rate	26.30%	26.50%
Debt/Equity ratio	0	0
Cost of debt	7.50%	38.60%

After-tax WACC	12.2%	16.1%


Selected WACC	14.2%

PGHH.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 PGHH.NS:

cost_of_equity (14.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.64) + 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.