ROUTE.NS WACC - Weighted Average Cost of Capital

The WACC of Route Mobile Ltd (ROUTE.NS) is 16.2%.

The Cost of Equity of Route Mobile Ltd (ROUTE.NS) is 15.80%.

The Cost of Debt of Route Mobile Ltd (ROUTE.NS) is 26.35%.

	Range	Selected
Cost of equity	14.40% - 17.20%	15.80%
Tax rate	13.90% - 15.90%	14.90%
Cost of debt	7.50% - 45.20%	26.35%
WACC	14.0% - 18.4%	16.2%

WACC

ROUTE.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.91	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.40%	17.20%

Tax rate	13.90%	15.90%
Debt/Equity ratio	0.06	0.06
Cost of debt	7.50%	45.20%

After-tax WACC	14.0%	18.4%


Selected WACC	16.2%

ROUTE.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 ROUTE.NS:

cost_of_equity (15.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.91) + 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.