VIKASPROP.NS WACC - Weighted Average Cost of Capital

The WACC of Vikas Proppant & Granite Ltd (VIKASPROP.NS) is 6.8%.

The Cost of Equity of Vikas Proppant & Granite Ltd (VIKASPROP.NS) is 13.65%.

The Cost of Debt of Vikas Proppant & Granite Ltd (VIKASPROP.NS) is 5.00%.

	Range	Selected
Cost of equity	11.90% - 15.40%	13.65%
Tax rate	12.00% - 17.40%	14.70%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.4% - 7.2%	6.8%

WACC

VIKASPROP.NS WACC calculation

Category	Low	High

Long-term bond rate	7.2%	7.7%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.56	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	15.40%

Tax rate	12.00%	17.40%
Debt/Equity ratio	2.7	2.7
Cost of debt	5.00%	5.00%

After-tax WACC	6.4%	7.2%


Selected WACC	6.8%

VIKASPROP.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 VIKASPROP.NS:

cost_of_equity (13.65%) = risk_free_rate (7.45%) + equity_risk_premium (8.80%) * adjusted_beta (0.56) + 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.