REMSONSIND.NS WACC - Weighted Average Cost of Capital

The WACC of Remsons Industries Ltd (REMSONSIND.NS) is 14.5%.

The Cost of Equity of Remsons Industries Ltd (REMSONSIND.NS) is 16.00%.

The Cost of Debt of Remsons Industries Ltd (REMSONSIND.NS) is 8.35%.

	Range	Selected
Cost of equity	14.60% - 17.40%	16.00%
Tax rate	27.60% - 29.10%	28.35%
Cost of debt	8.10% - 8.60%	8.35%
WACC	13.3% - 15.8%	14.5%

WACC

REMSONSIND.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.92	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.60%	17.40%

Tax rate	27.60%	29.10%
Debt/Equity ratio	0.17	0.17
Cost of debt	8.10%	8.60%

After-tax WACC	13.3%	15.8%


Selected WACC	14.5%

REMSONSIND.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 REMSONSIND.NS:

cost_of_equity (16.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.92) + 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.