RAJESHEXPO.NS WACC - Weighted Average Cost of Capital

The WACC of Rajesh Exports Ltd (RAJESHEXPO.NS) is 16.1%.

The Cost of Equity of Rajesh Exports Ltd (RAJESHEXPO.NS) is 17.70%.

The Cost of Debt of Rajesh Exports Ltd (RAJESHEXPO.NS) is 12.50%.

	Range	Selected
Cost of equity	15.70% - 19.70%	17.70%
Tax rate	4.50% - 6.70%	5.60%
Cost of debt	10.50% - 14.50%	12.50%
WACC	14.1% - 18.0%	16.1%

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	1.06	1.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.70%	19.70%

Tax rate	4.50%	6.70%
Debt/Equity ratio	0.37	0.37
Cost of debt	10.50%	14.50%

After-tax WACC	14.1%	18.0%


Selected WACC	16.1%

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 (17.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.06) + 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.