PHILIPCARB.NS WACC - Weighted Average Cost of Capital

The WACC of Phillips Carbon Black Ltd (PHILIPCARB.NS) is 15.4%.

The Cost of Equity of Phillips Carbon Black Ltd (PHILIPCARB.NS) is 17.05%.

The Cost of Debt of Phillips Carbon Black Ltd (PHILIPCARB.NS) is 6.80%.

	Range	Selected
Cost of equity	15.60% - 18.50%	17.05%
Tax rate	22.60% - 25.90%	24.25%
Cost of debt	5.00% - 8.60%	6.80%
WACC	14.0% - 16.8%	15.4%

WACC

PHILIPCARB.NS WACC calculation

Category	Low	High

Long-term bond rate	7.5%	8.0%
Equity market risk premium	6.9%	7.9%
Adjusted beta	1.17	1.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.60%	18.50%

Tax rate	22.60%	25.90%
Debt/Equity ratio	0.16	0.16
Cost of debt	5.00%	8.60%

After-tax WACC	14.0%	16.8%


Selected WACC	15.4%

PHILIPCARB.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 PHILIPCARB.NS:

cost_of_equity (17.05%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (1.17) + 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.