VINYLINDIA.NS
Vinyl Chemicals India Ltd
Price:  
316.30 
INR
Volume:  
8,490.00
India | Trading Companies & Distributors
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VINYLINDIA.NS WACC - Weighted Average Cost of Capital

The WACC of Vinyl Chemicals India Ltd (VINYLINDIA.NS) is 14.6%.

The Cost of Equity of Vinyl Chemicals India Ltd (VINYLINDIA.NS) is 14.55%.
The Cost of Debt of Vinyl Chemicals India Ltd (VINYLINDIA.NS) is 43.90%.

Range Selected
Cost of equity 13.00% - 16.10% 14.55%
Tax rate 25.50% - 25.90% 25.70%
Cost of debt 7.50% - 80.30% 43.90%
WACC 13.0% - 16.1% 14.6%
WACC

VINYLINDIA.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.73 0.88
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.00% 16.10%
Tax rate 25.50% 25.90%
Debt/Equity ratio 0 0
Cost of debt 7.50% 80.30%
After-tax WACC 13.0% 16.1%
Selected WACC 14.6%

VINYLINDIA.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 VINYLINDIA.NS:

cost_of_equity (14.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.73) + 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.