RAJESHEXPO.NS WACC - Weighted Average Cost of Capital

The WACC of Rajesh Exports Ltd (RAJESHEXPO.NS) is 13.1%.

The Cost of Equity of Rajesh Exports Ltd (RAJESHEXPO.NS) is 13.15%.

The Cost of Debt of Rajesh Exports Ltd (RAJESHEXPO.NS) is 13.30%.

	Range	Selected
Cost of equity	11.90% - 14.40%	13.15%
Tax rate	4.50% - 6.70%	5.60%
Cost of debt	12.10% - 14.50%	13.30%
WACC	11.9% - 14.3%	13.1%

WACC

RAJESHEXPO.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.61	0.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	14.40%

Tax rate	4.50%	6.70%
Debt/Equity ratio	0.17	0.17
Cost of debt	12.10%	14.50%

After-tax WACC	11.9%	14.3%


Selected WACC	13.1%

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 (13.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.61) + 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.