UNIVASTU.NS
Univastu India Ltd
Price:  
272.05 
INR
Volume:  
40,464
India | Construction

UNIVASTU.NS WACC - Weighted Average Cost of Capital

The WACC of Univastu India Ltd (UNIVASTU.NS) is 11.7%.

The Cost of Equity of Univastu India Ltd (UNIVASTU.NS) is 12.2%.
The Cost of Debt of Univastu India Ltd (UNIVASTU.NS) is 9.75%.

RangeSelected
Cost of equity10.3% - 14.1%12.2%
Tax rate26.6% - 27.0%26.8%
Cost of debt7.5% - 12.0%9.75%
WACC9.8% - 13.6%11.7%
WACC

UNIVASTU.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.410.67
Additional risk adjustments0.0%0.5%
Cost of equity10.3%14.1%
Tax rate26.6%27.0%
Debt/Equity ratio
0.110.11
Cost of debt7.5%12.0%
After-tax WACC9.8%13.6%
Selected WACC11.7%

UNIVASTU.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 UNIVASTU.NS:

cost_of_equity (12.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.41) + 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.