PVP.NS WACC - Weighted Average Cost of Capital

The WACC of PVP Ventures Ltd (PVP.NS) is 12.3%.

The Cost of Equity of PVP Ventures Ltd (PVP.NS) is 12.30%.

The Cost of Debt of PVP Ventures Ltd (PVP.NS) is 13.95%.

	Range	Selected
Cost of equity	10.40% - 14.20%	12.30%
Tax rate	2.00% - 5.20%	3.60%
Cost of debt	4.00% - 23.90%	13.95%
WACC	10.2% - 14.5%	12.3%

WACC

PVP.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.43	0.68

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	14.20%

Tax rate	2.00%	5.20%
Debt/Equity ratio	0.04	0.04
Cost of debt	4.00%	23.90%

After-tax WACC	10.2%	14.5%


Selected WACC	12.3%

PVP.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 PVP.NS:

cost_of_equity (12.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.43) + 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.