VINATIORGA.NS WACC - Weighted Average Cost of Capital

The WACC of Vinati Organics Ltd (VINATIORGA.NS) is 15.2%.

The Cost of Equity of Vinati Organics Ltd (VINATIORGA.NS) is 14.75%.

The Cost of Debt of Vinati Organics Ltd (VINATIORGA.NS) is 233.00%.

	Range	Selected
Cost of equity	13.60% - 15.90%	14.75%
Tax rate	23.80% - 24.70%	24.25%
Cost of debt	7.50% - 458.50%	233.00%
WACC	13.6% - 16.9%	15.2%

WACC

VINATIORGA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.81	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.60%	15.90%

Tax rate	23.80%	24.70%
Debt/Equity ratio	0	0
Cost of debt	7.50%	458.50%

After-tax WACC	13.6%	16.9%


Selected WACC	15.2%

VINATIORGA.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 VINATIORGA.NS:

cost_of_equity (14.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.81) + 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.