RAJRATAN.NS WACC - Weighted Average Cost of Capital

The WACC of Rajratan Global Wire Ltd (RAJRATAN.NS) is 14.1%.

The Cost of Equity of Rajratan Global Wire Ltd (RAJRATAN.NS) is 14.80%.

The Cost of Debt of Rajratan Global Wire Ltd (RAJRATAN.NS) is 9.70%.

	Range	Selected
Cost of equity	12.30% - 17.30%	14.80%
Tax rate	22.40% - 23.30%	22.85%
Cost of debt	7.00% - 12.40%	9.70%
WACC	11.6% - 16.5%	14.1%

WACC

RAJRATAN.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.66	1.02

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.30%	17.30%

Tax rate	22.40%	23.30%
Debt/Equity ratio	0.11	0.11
Cost of debt	7.00%	12.40%

After-tax WACC	11.6%	16.5%


Selected WACC	14.1%

RAJRATAN.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 RAJRATAN.NS:

cost_of_equity (14.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.66) + 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.