VINDHYATEL.NS WACC - Weighted Average Cost of Capital

The WACC of Vindhya Telelinks Ltd (VINDHYATEL.NS) is 15.8%.

The Cost of Equity of Vindhya Telelinks Ltd (VINDHYATEL.NS) is 20.15%.

The Cost of Debt of Vindhya Telelinks Ltd (VINDHYATEL.NS) is 10.95%.

	Range	Selected
Cost of equity	18.60% - 21.70%	20.15%
Tax rate	24.80% - 24.90%	24.85%
Cost of debt	10.00% - 11.90%	10.95%
WACC	14.6% - 17.0%	15.8%

WACC

VINDHYATEL.NS WACC calculation

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	18.60%	21.70%

Tax rate	24.80%	24.90%
Debt/Equity ratio	0.58	0.58
Cost of debt	10.00%	11.90%

After-tax WACC	14.6%	17.0%


Selected WACC	15.8%

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.