RAJESHEXPO.NS
Rajesh Exports Ltd
Price:  
202.55 
INR
Volume:  
771,145
India | Textiles, Apparel & Luxury Goods

RAJESHEXPO.NS WACC - Weighted Average Cost of Capital

The WACC of Rajesh Exports Ltd (RAJESHEXPO.NS) is 12.6%.

The Cost of Equity of Rajesh Exports Ltd (RAJESHEXPO.NS) is 12.7%.
The Cost of Debt of Rajesh Exports Ltd (RAJESHEXPO.NS) is 12.2%.

RangeSelected
Cost of equity11.4% - 14.0%12.7%
Tax rate3.9% - 4.8%4.35%
Cost of debt12.1% - 12.3%12.2%
WACC11.4% - 13.8%12.6%
WACC

RAJESHEXPO.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.550.66
Additional risk adjustments0.0%0.5%
Cost of equity11.4%14.0%
Tax rate3.9%4.8%
Debt/Equity ratio
0.110.11
Cost of debt12.1%12.3%
After-tax WACC11.4%13.8%
Selected WACC12.6%

RAJESHEXPO.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 RAJESHEXPO.NS:

cost_of_equity (12.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.55) + 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.