VINDHYATEL.NS WACC - Weighted Average Cost of Capital
The WACC of Vindhya Telelinks Ltd (VINDHYATEL.NS) is 15.8%.
| Range | Selected | |
| Cost of equity | 18.6% - 21.7% | 20.15% |
| Tax rate | 24.8% - 24.9% | 24.85% |
| Cost of debt | 10.0% - 11.9% | 10.95% |
| WACC | 14.6% - 17.0% | 15.8% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.42 | 1.48 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 18.6% | 21.7% |
| Tax rate | 24.8% | 24.9% |
| Debt/Equity ratio | 0.58 | 0.58 |
| Cost of debt | 10.0% | 11.9% |
| After-tax WACC | 14.6% | 17.0% |
| Selected WACC | 15.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VINDHYATEL.NS | Vindhya Telelinks Ltd | 0.58 | 1.76 | 1.23 |
| 517258.BO | Precision Electronics Ltd | 0.3 | 0.64 | 0.52 |
| 526775.BO | Valiant Communications Ltd | 0 | 1.05 | 1.05 |
| 532406.BO | Avantel Ltd | 0 | 1.18 | 1.18 |
| AKSHOPTFBR.NS | Aksh Optifibre Ltd | 0.7 | 1.77 | 1.16 |
| ASTRAMICRO.NS | Astra Micro Wave Products Ltd | 0.04 | 1.52 | 1.48 |
| BIRLACABLE.NS | Birla Cable Ltd | 0.2 | 1.7 | 1.47 |
| MRO-TEK.NS | MRO-TEK Reality Ltd | 1.02 | 0.75 | 0.43 |
| SMARTLINK.NS | Smartlink Holdings Ltd | 0.02 | 1.52 | 1.49 |
| TEJASNET.NS | Tejas Networks Ltd | 0.15 | 1.21 | 1.08 |
| Low | High | |
| Unlevered beta | 1.13 | 1.2 |
| Relevered beta | 1.63 | 1.72 |
| Adjusted relevered beta | 1.42 | 1.48 |
VINDHYATEL.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 VINDHYATEL.NS:
cost_of_equity (20.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.42) + 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.