RADAAN.NS WACC - Weighted Average Cost of Capital

The WACC of Radaan Media Works India Ltd (RADAAN.NS) is 13.3%.

The Cost of Equity of Radaan Media Works India Ltd (RADAAN.NS) is 19.70%.

The Cost of Debt of Radaan Media Works India Ltd (RADAAN.NS) is 9.50%.

	Range	Selected
Cost of equity	17.80% - 21.60%	19.70%
Tax rate	0.60% - 1.10%	0.85%
Cost of debt	8.50% - 10.50%	9.50%
WACC	11.9% - 14.6%	13.3%

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	1.32	1.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	17.80%	21.60%

Tax rate	0.60%	1.10%
Debt/Equity ratio	1.66	1.66
Cost of debt	8.50%	10.50%

After-tax WACC	11.9%	14.6%


Selected WACC	13.3%

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 (19.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.32) + 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.