RAJTV.NS WACC - Weighted Average Cost of Capital

The WACC of Raj Television Network Ltd (RAJTV.NS) is 11.1%.

The Cost of Equity of Raj Television Network Ltd (RAJTV.NS) is 11.60%.

The Cost of Debt of Raj Television Network Ltd (RAJTV.NS) is 9.05%.

	Range	Selected
Cost of equity	10.60% - 12.60%	11.60%
Tax rate	32.60% - 45.40%	39.00%
Cost of debt	7.00% - 11.10%	9.05%
WACC	10.1% - 12.0%	11.1%

WACC

RAJTV.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.45	0.51

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	12.60%

Tax rate	32.60%	45.40%
Debt/Equity ratio	0.1	0.1
Cost of debt	7.00%	11.10%

After-tax WACC	10.1%	12.0%


Selected WACC	11.1%

RAJTV.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 RAJTV.NS:

cost_of_equity (11.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.45) + 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.