VIPULLTD.NS WACC - Weighted Average Cost of Capital

The WACC of Vipul Ltd (VIPULLTD.NS) is 14.4%.

The Cost of Equity of Vipul Ltd (VIPULLTD.NS) is 24.15%.

The Cost of Debt of Vipul Ltd (VIPULLTD.NS) is 6.75%.

	Range	Selected
Cost of equity	20.60% - 27.70%	24.15%
Tax rate	12.50% - 16.10%	14.30%
Cost of debt	6.00% - 7.50%	6.75%
WACC	12.5% - 16.3%	14.4%

WACC

VIPULLTD.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.66	2.13

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.60%	27.70%

Tax rate	12.50%	16.10%
Debt/Equity ratio	1.13	1.13
Cost of debt	6.00%	7.50%

After-tax WACC	12.5%	16.3%


Selected WACC	14.4%

VIPULLTD.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 VIPULLTD.NS:

cost_of_equity (24.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.66) + 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.