UNIENTER.NS WACC - Weighted Average Cost of Capital

The WACC of Uniphos Enterprises Ltd (UNIENTER.NS) is 16.1%.

The Cost of Equity of Uniphos Enterprises Ltd (UNIENTER.NS) is 13.90%.

The Cost of Debt of Uniphos Enterprises Ltd (UNIENTER.NS) is 18.60%.

	Range	Selected
Cost of equity	11.10% - 16.70%	13.90%
Tax rate	1.20% - 2.70%	1.95%
Cost of debt	18.60% - 18.60%	18.60%
WACC	14.8% - 17.4%	16.1%

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	0.51	0.95

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.10%	16.70%

Tax rate	1.20%	2.70%
Debt/Equity ratio	1	1
Cost of debt	18.60%	18.60%

After-tax WACC	14.8%	17.4%


Selected WACC	16.1%

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 (13.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.51) + 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.