RUSHIL.NS WACC - Weighted Average Cost of Capital

The WACC of Rushil Decor Ltd (RUSHIL.NS) is 12.7%.

The Cost of Equity of Rushil Decor Ltd (RUSHIL.NS) is 16.20%.

The Cost of Debt of Rushil Decor Ltd (RUSHIL.NS) is 7.30%.

	Range	Selected
Cost of equity	14.10% - 18.30%	16.20%
Tax rate	24.70% - 26.00%	25.35%
Cost of debt	5.50% - 9.10%	7.30%
WACC	10.9% - 14.6%	12.7%

WACC

RUSHIL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.87	1.12

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.10%	18.30%

Tax rate	24.70%	26.00%
Debt/Equity ratio	0.48	0.48
Cost of debt	5.50%	9.10%

After-tax WACC	10.9%	14.6%


Selected WACC	12.7%

RUSHIL.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 RUSHIL.NS:

cost_of_equity (16.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.87) + 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.