RELIANCE.NS
Reliance Industries Ltd
Price:  
1,515.40 
INR
Volume:  
11,117,052.00
India | Oil, Gas & Consumable Fuels
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RELIANCE.NS WACC - Weighted Average Cost of Capital

The WACC of Reliance Industries Ltd (RELIANCE.NS) is 15.1%.

The Cost of Equity of Reliance Industries Ltd (RELIANCE.NS) is 16.35%.
The Cost of Debt of Reliance Industries Ltd (RELIANCE.NS) is 9.75%.

Range Selected
Cost of equity 15.00% - 17.70% 16.35%
Tax rate 20.80% - 22.50% 21.65%
Cost of debt 9.10% - 10.40% 9.75%
WACC 13.9% - 16.3% 15.1%
WACC

RELIANCE.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.98 1.06
Additional risk adjustments 0.0% 0.5%
Cost of equity 15.00% 17.70%
Tax rate 20.80% 22.50%
Debt/Equity ratio 0.17 0.17
Cost of debt 9.10% 10.40%
After-tax WACC 13.9% 16.3%
Selected WACC 15.1%

RELIANCE.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 RELIANCE.NS:

cost_of_equity (16.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.98) + 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.