VASWANI.NS WACC - Weighted Average Cost of Capital

The WACC of Vaswani Industries Ltd (VASWANI.NS) is 11.8%.

The Cost of Equity of Vaswani Industries Ltd (VASWANI.NS) is 14.35%.

The Cost of Debt of Vaswani Industries Ltd (VASWANI.NS) is 13.90%.

	Range	Selected
Cost of equity	12.20% - 16.50%	14.35%
Tax rate	31.50% - 36.30%	33.90%
Cost of debt	7.00% - 20.80%	13.90%
WACC	8.7% - 15.0%	11.8%

WACC

VASWANI.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.64	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.20%	16.50%

Tax rate	31.50%	36.30%
Debt/Equity ratio	0.91	0.91
Cost of debt	7.00%	20.80%

After-tax WACC	8.7%	15.0%


Selected WACC	11.8%

VASWANI.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 VASWANI.NS:

cost_of_equity (14.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.64) + 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.