VERTOZ.NS
Vertoz Advertising Ltd
Price:  
91.70 
INR
Volume:  
583,724.00
India | Media
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VERTOZ.NS WACC - Weighted Average Cost of Capital

The WACC of Vertoz Advertising Ltd (VERTOZ.NS) is 15.1%.

The Cost of Equity of Vertoz Advertising Ltd (VERTOZ.NS) is 15.25%.
The Cost of Debt of Vertoz Advertising Ltd (VERTOZ.NS) is 10.05%.

Range Selected
Cost of equity 14.00% - 16.50% 15.25%
Tax rate 10.60% - 15.70% 13.15%
Cost of debt 7.50% - 12.60% 10.05%
WACC 13.8% - 16.4% 15.1%
WACC

VERTOZ.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.86 0.93
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.00% 16.50%
Tax rate 10.60% 15.70%
Debt/Equity ratio 0.03 0.03
Cost of debt 7.50% 12.60%
After-tax WACC 13.8% 16.4%
Selected WACC 15.1%

VERTOZ.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 VERTOZ.NS:

cost_of_equity (15.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.86) + 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.