VAIBHAVGBL.NS WACC - Weighted Average Cost of Capital

The WACC of Vaibhav Global Ltd (VAIBHAVGBL.NS) is 15.5%.

The Cost of Equity of Vaibhav Global Ltd (VAIBHAVGBL.NS) is 16.10%.

The Cost of Debt of Vaibhav Global Ltd (VAIBHAVGBL.NS) is 5.75%.

	Range	Selected
Cost of equity	14.00% - 18.20%	16.10%
Tax rate	20.40% - 22.90%	21.65%
Cost of debt	4.00% - 7.50%	5.75%
WACC	13.5% - 17.6%	15.5%

WACC

VAIBHAVGBL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.86	1.11

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.00%	18.20%

Tax rate	20.40%	22.90%
Debt/Equity ratio	0.05	0.05
Cost of debt	4.00%	7.50%

After-tax WACC	13.5%	17.6%


Selected WACC	15.5%

VAIBHAVGBL.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 VAIBHAVGBL.NS:

cost_of_equity (16.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.86) + 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.