ROSSELLIND.NS WACC - Weighted Average Cost of Capital

The WACC of Rossell India Ltd (ROSSELLIND.NS) is 13.3%.

The Cost of Equity of Rossell India Ltd (ROSSELLIND.NS) is 16.75%.

The Cost of Debt of Rossell India Ltd (ROSSELLIND.NS) is 7.45%.

	Range	Selected
Cost of equity	14.80% - 18.70%	16.75%
Tax rate	14.60% - 17.80%	16.20%
Cost of debt	7.30% - 7.60%	7.45%
WACC	12.0% - 14.6%	13.3%

WACC

ROSSELLIND.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.95	1.16

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.80%	18.70%

Tax rate	14.60%	17.80%
Debt/Equity ratio	0.48	0.48
Cost of debt	7.30%	7.60%

After-tax WACC	12.0%	14.6%


Selected WACC	13.3%

ROSSELLIND.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 ROSSELLIND.NS:

cost_of_equity (16.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.95) + 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.