VICEROY.NS WACC - Weighted Average Cost of Capital

The WACC of Viceroy Hotels Ltd (VICEROY.NS) is 10.1%.

The Cost of Equity of Viceroy Hotels Ltd (VICEROY.NS) is 12.05%.

The Cost of Debt of Viceroy Hotels Ltd (VICEROY.NS) is 5.50%.

	Range	Selected
Cost of equity	11.10% - 13.00%	12.05%
Tax rate	13.10% - 14.90%	14.00%
Cost of debt	4.00% - 7.00%	5.50%
WACC	9.1% - 11.1%	10.1%

WACC

VICEROY.NS WACC calculation

Category	Low	High

Long-term bond rate	7.1%	7.6%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.49	0.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.10%	13.00%

Tax rate	13.10%	14.90%
Debt/Equity ratio	0.36	0.36
Cost of debt	4.00%	7.00%

After-tax WACC	9.1%	11.1%


Selected WACC	10.1%

VICEROY.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 VICEROY.NS:

cost_of_equity (12.05%) = risk_free_rate (7.35%) + 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.