PREMIERPOL.NS WACC - Weighted Average Cost of Capital

The WACC of Premier Polyfilm Ltd (PREMIERPOL.NS) is 13.7%.

The Cost of Equity of Premier Polyfilm Ltd (PREMIERPOL.NS) is 13.90%.

The Cost of Debt of Premier Polyfilm Ltd (PREMIERPOL.NS) is 8.05%.

	Range	Selected
Cost of equity	12.10% - 15.70%	13.90%
Tax rate	24.70% - 25.20%	24.95%
Cost of debt	7.50% - 8.60%	8.05%
WACC	11.9% - 15.4%	13.7%

WACC

PREMIERPOL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.63	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.10%	15.70%

Tax rate	24.70%	25.20%
Debt/Equity ratio	0.04	0.04
Cost of debt	7.50%	8.60%

After-tax WACC	11.9%	15.4%


Selected WACC	13.7%

PREMIERPOL.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 PREMIERPOL.NS:

cost_of_equity (13.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.63) + 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.