RUSHIL.NS
Rushil Decor Ltd
Price:  
28.53 
INR
Volume:  
220,172.00
India | Building Products
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RUSHIL.NS WACC - Weighted Average Cost of Capital

The WACC of Rushil Decor Ltd (RUSHIL.NS) is 15.0%.

The Cost of Equity of Rushil Decor Ltd (RUSHIL.NS) is 18.10%.
The Cost of Debt of Rushil Decor Ltd (RUSHIL.NS) is 8.10%.

Range Selected
Cost of equity 15.60% - 20.60% 18.10%
Tax rate 24.80% - 26.00% 25.40%
Cost of debt 7.10% - 9.10% 8.10%
WACC 13.0% - 17.1% 15.0%
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 1.05 1.37
Additional risk adjustments 0.0% 0.5%
Cost of equity 15.60% 20.60%
Tax rate 24.80% 26.00%
Debt/Equity ratio 0.34 0.34
Cost of debt 7.10% 9.10%
After-tax WACC 13.0% 17.1%
Selected WACC 15.0%

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 (18.10%) = 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.