URAVI.NS WACC - Weighted Average Cost of Capital

The WACC of Uravi T & Wedge Lamps Ltd (URAVI.NS) is 13.5%.

The Cost of Equity of Uravi T & Wedge Lamps Ltd (URAVI.NS) is 13.80%.

The Cost of Debt of Uravi T & Wedge Lamps Ltd (URAVI.NS) is 9.80%.

	Range	Selected
Cost of equity	12.50% - 15.10%	13.80%
Tax rate	22.10% - 27.40%	24.75%
Cost of debt	9.10% - 10.50%	9.80%
WACC	12.2% - 14.7%	13.5%

WACC

URAVI.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.68	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.50%	15.10%

Tax rate	22.10%	27.40%
Debt/Equity ratio	0.06	0.06
Cost of debt	9.10%	10.50%

After-tax WACC	12.2%	14.7%


Selected WACC	13.5%

URAVI.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 URAVI.NS:

cost_of_equity (13.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.68) + 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.