RADAAN.NS WACC - Weighted Average Cost of Capital

The WACC of Radaan Media Works India Ltd (RADAAN.NS) is 14.8%.

The Cost of Equity of Radaan Media Works India Ltd (RADAAN.NS) is 17.25%.

The Cost of Debt of Radaan Media Works India Ltd (RADAAN.NS) is 13.35%.

	Range	Selected
Cost of equity	14.80% - 19.70%	17.25%
Tax rate	1.30% - 3.60%	2.45%
Cost of debt	8.10% - 18.60%	13.35%
WACC	11.0% - 18.7%	14.8%

WACC

RADAAN.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.95	1.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.80%	19.70%

Tax rate	1.30%	3.60%
Debt/Equity ratio	1.3	1.3
Cost of debt	8.10%	18.60%

After-tax WACC	11.0%	18.7%


Selected WACC	14.8%

RADAAN.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 RADAAN.NS:

cost_of_equity (17.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.95) + 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.