PNC.NS
Pritish Nandy Communications Ltd
Price:  
27.44 
INR
Volume:  
12,634.00
India | Entertainment
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PNC.NS WACC - Weighted Average Cost of Capital

The WACC of Pritish Nandy Communications Ltd (PNC.NS) is 13.2%.

The Cost of Equity of Pritish Nandy Communications Ltd (PNC.NS) is 13.60%.
The Cost of Debt of Pritish Nandy Communications Ltd (PNC.NS) is 7.60%.

Range Selected
Cost of equity 12.20% - 15.00% 13.60%
Tax rate 2.90% - 7.90% 5.40%
Cost of debt 7.00% - 8.20% 7.60%
WACC 11.9% - 14.6% 13.2%
WACC

PNC.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 0.77
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.20% 15.00%
Tax rate 2.90% 7.90%
Debt/Equity ratio 0.06 0.06
Cost of debt 7.00% 8.20%
After-tax WACC 11.9% 14.6%
Selected WACC 13.2%

PNC.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 PNC.NS:

cost_of_equity (13.60%) = 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.