ROSSELLIND.NS WACC - Weighted Average Cost of Capital

The WACC of Rossell India Ltd (ROSSELLIND.NS) is 13.6%.

The Cost of Equity of Rossell India Ltd (ROSSELLIND.NS) is 17.00%.

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

	Range	Selected
Cost of equity	15.60% - 18.40%	17.00%
Tax rate	14.60% - 17.80%	16.20%
Cost of debt	7.30% - 7.60%	7.45%
WACC	12.6% - 14.6%	13.6%

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	1.05	1.13

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.60%	18.40%

Tax rate	14.60%	17.80%
Debt/Equity ratio	0.46	0.46
Cost of debt	7.30%	7.60%

After-tax WACC	12.6%	14.6%


Selected WACC	13.6%

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 (17.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.05) + 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.