PGIL.NS WACC - Weighted Average Cost of Capital

The WACC of Pearl Global Industries Ltd (PGIL.NS) is 15.1%.

The Cost of Equity of Pearl Global Industries Ltd (PGIL.NS) is 15.85%.

The Cost of Debt of Pearl Global Industries Ltd (PGIL.NS) is 9.25%.

	Range	Selected
Cost of equity	14.60% - 17.10%	15.85%
Tax rate	13.40% - 15.50%	14.45%
Cost of debt	8.30% - 10.20%	9.25%
WACC	13.9% - 16.3%	15.1%

WACC

PGIL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.93	0.99

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.60%	17.10%

Tax rate	13.40%	15.50%
Debt/Equity ratio	0.11	0.11
Cost of debt	8.30%	10.20%

After-tax WACC	13.9%	16.3%


Selected WACC	15.1%

PGIL.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 PGIL.NS:

cost_of_equity (15.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.93) + 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.