UNIVASTU.NS WACC - Weighted Average Cost of Capital

The WACC of Univastu India Ltd (UNIVASTU.NS) is 12.7%.

The Cost of Equity of Univastu India Ltd (UNIVASTU.NS) is 13.40%.

The Cost of Debt of Univastu India Ltd (UNIVASTU.NS) is 9.45%.

	Range	Selected
Cost of equity	11.90% - 14.90%	13.40%
Tax rate	27.10% - 29.00%	28.05%
Cost of debt	7.90% - 11.00%	9.45%
WACC	11.2% - 14.1%	12.7%

WACC

UNIVASTU.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.61	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	14.90%

Tax rate	27.10%	29.00%
Debt/Equity ratio	0.13	0.13
Cost of debt	7.90%	11.00%

After-tax WACC	11.2%	14.1%


Selected WACC	12.7%

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 (13.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.61) + 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.