UNIENTER.NS WACC - Weighted Average Cost of Capital

The WACC of Uniphos Enterprises Ltd (UNIENTER.NS) is 10.9%.

The Cost of Equity of Uniphos Enterprises Ltd (UNIENTER.NS) is 14.50%.

The Cost of Debt of Uniphos Enterprises Ltd (UNIENTER.NS) is 7.50%.

	Range	Selected
Cost of equity	11.80% - 17.20%	14.50%
Tax rate	1.20% - 1.60%	1.40%
Cost of debt	7.50% - 7.50%	7.50%
WACC	9.6% - 12.3%	10.9%

WACC

UNIENTER.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.6	1

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	17.20%

Tax rate	1.20%	1.60%
Debt/Equity ratio	1	1
Cost of debt	7.50%	7.50%

After-tax WACC	9.6%	12.3%


Selected WACC	10.9%

UNIENTER.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 UNIENTER.NS:

cost_of_equity (14.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.6) + 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.