VARDMNPOLY.NS
Vardhman Polytex Ltd
Price:  
11.66 
INR
Volume:  
358,608
India | Textiles, Apparel & Luxury Goods

VARDMNPOLY.NS WACC - Weighted Average Cost of Capital

The WACC of Vardhman Polytex Ltd (VARDMNPOLY.NS) is 11.1%.

The Cost of Equity of Vardhman Polytex Ltd (VARDMNPOLY.NS) is 11.95%.
The Cost of Debt of Vardhman Polytex Ltd (VARDMNPOLY.NS) is 7.7%.

RangeSelected
Cost of equity10.6% - 13.3%11.95%
Tax rate30.0% - 30.0%30%
Cost of debt6.3% - 9.1%7.7%
WACC9.8% - 12.5%11.1%
WACC

VARDMNPOLY.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.450.58
Additional risk adjustments0.0%0.5%
Cost of equity10.6%13.3%
Tax rate30.0%30.0%
Debt/Equity ratio
0.140.14
Cost of debt6.3%9.1%
After-tax WACC9.8%12.5%
Selected WACC11.1%

VARDMNPOLY.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 VARDMNPOLY.NS:

cost_of_equity (11.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.45) + 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.