PIONEEREMB.NS WACC - Weighted Average Cost of Capital

The WACC of Pioneer Embroideries Ltd (PIONEEREMB.NS) is 17.0%.

The Cost of Equity of Pioneer Embroideries Ltd (PIONEEREMB.NS) is 19.35%.

The Cost of Debt of Pioneer Embroideries Ltd (PIONEEREMB.NS) is 20.85%.

	Range	Selected
Cost of equity	17.00% - 21.70%	19.35%
Tax rate	23.70% - 28.10%	25.90%
Cost of debt	14.80% - 26.90%	20.85%
WACC	13.7% - 20.3%	17.0%

WACC

PIONEEREMB.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.22	1.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	17.00%	21.70%

Tax rate	23.70%	28.10%
Debt/Equity ratio	1.38	1.38
Cost of debt	14.80%	26.90%

After-tax WACC	13.7%	20.3%


Selected WACC	17.0%

PIONEEREMB.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 PIONEEREMB.NS:

cost_of_equity (19.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.22) + 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.