VERTOZ.NS WACC - Weighted Average Cost of Capital

The WACC of Vertoz Advertising Ltd (VERTOZ.NS) is 16.1%.

The Cost of Equity of Vertoz Advertising Ltd (VERTOZ.NS) is 16.40%.

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

	Range	Selected
Cost of equity	14.30% - 18.50%	16.40%
Tax rate	10.60% - 15.70%	13.15%
Cost of debt	7.50% - 12.60%	10.05%
WACC	14.0% - 18.2%	16.1%

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	0.89	1.14

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.30%	18.50%

Tax rate	10.60%	15.70%
Debt/Equity ratio	0.03	0.03
Cost of debt	7.50%	12.60%

After-tax WACC	14.0%	18.2%


Selected WACC	16.1%

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 (16.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.89) + 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.