RAIN.NS WACC - Weighted Average Cost of Capital

The WACC of Rain Industries Ltd (RAIN.NS) is 15.5%.

The Cost of Equity of Rain Industries Ltd (RAIN.NS) is 23.85%.

The Cost of Debt of Rain Industries Ltd (RAIN.NS) is 15.85%.

	Range	Selected
Cost of equity	20.00% - 27.70%	23.85%
Tax rate	30.00% - 30.00%	30.00%
Cost of debt	7.80% - 23.90%	15.85%
WACC	10.5% - 20.5%	15.5%

WACC

RAIN.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.58	2.13

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.00%	27.70%

Tax rate	30.00%	30.00%
Debt/Equity ratio	1.89	1.89
Cost of debt	7.80%	23.90%

After-tax WACC	10.5%	20.5%


Selected WACC	15.5%

RAIN.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 RAIN.NS:

cost_of_equity (23.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.58) + 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.