VAIBHAVGBL.NS WACC - Weighted Average Cost of Capital

The WACC of Vaibhav Global Ltd (VAIBHAVGBL.NS) is 15.9%.

The Cost of Equity of Vaibhav Global Ltd (VAIBHAVGBL.NS) is 16.70%.

The Cost of Debt of Vaibhav Global Ltd (VAIBHAVGBL.NS) is 5.95%.

	Range	Selected
Cost of equity	15.50% - 17.90%	16.70%
Tax rate	22.50% - 24.30%	23.40%
Cost of debt	4.40% - 7.50%	5.95%
WACC	14.7% - 17.1%	15.9%

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	1.04	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.50%	17.90%

Tax rate	22.50%	24.30%
Debt/Equity ratio	0.07	0.07
Cost of debt	4.40%	7.50%

After-tax WACC	14.7%	17.1%


Selected WACC	15.9%

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 (16.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.04) + 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.