VASCONEQ.NS WACC - Weighted Average Cost of Capital

The WACC of Vascon Engineers Ltd (VASCONEQ.NS) is 15.4%.

The Cost of Equity of Vascon Engineers Ltd (VASCONEQ.NS) is 15.90%.

The Cost of Debt of Vascon Engineers Ltd (VASCONEQ.NS) is 13.35%.

	Range	Selected
Cost of equity	13.20% - 18.60%	15.90%
Tax rate	7.20% - 10.10%	8.65%
Cost of debt	8.30% - 18.40%	13.35%
WACC	12.5% - 18.4%	15.4%

WACC

VASCONEQ.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.76	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.20%	18.60%

Tax rate	7.20%	10.10%
Debt/Equity ratio	0.15	0.15
Cost of debt	8.30%	18.40%

After-tax WACC	12.5%	18.4%


Selected WACC	15.4%

VASCONEQ.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 VASCONEQ.NS:

cost_of_equity (15.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.76) + 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.