VASCONEQ.NS WACC - Weighted Average Cost of Capital

The WACC of Vascon Engineers Ltd (VASCONEQ.NS) is 17.1%.

The Cost of Equity of Vascon Engineers Ltd (VASCONEQ.NS) is 18.05%.

The Cost of Debt of Vascon Engineers Ltd (VASCONEQ.NS) is 15.20%.

	Range	Selected
Cost of equity	15.50% - 20.60%	18.05%
Tax rate	7.20% - 10.10%	8.65%
Cost of debt	10.00% - 20.40%	15.20%
WACC	14.0% - 20.1%	17.1%

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	1.04	1.37

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.50%	20.60%

Tax rate	7.20%	10.10%
Debt/Equity ratio	0.3	0.3
Cost of debt	10.00%	20.40%

After-tax WACC	14.0%	20.1%


Selected WACC	17.1%

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 (18.05%) = 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.