VASCONEQ.NS WACC - Weighted Average Cost of Capital

The WACC of Vascon Engineers Ltd (VASCONEQ.NS) is 13.9%.

The Cost of Equity of Vascon Engineers Ltd (VASCONEQ.NS) is 13.95%.

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

	Range	Selected
Cost of equity	10.90% - 17.00%	13.95%
Tax rate	7.20% - 10.10%	8.65%
Cost of debt	10.00% - 20.40%	15.20%
WACC	10.6% - 17.3%	13.9%

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	0.49	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	17.00%

Tax rate	7.20%	10.10%
Debt/Equity ratio	0.27	0.27
Cost of debt	10.00%	20.40%

After-tax WACC	10.6%	17.3%


Selected WACC	13.9%

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 (13.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.49) + 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.