VISAKAIND.NS WACC - Weighted Average Cost of Capital

The WACC of Visaka Industries Ltd (VISAKAIND.NS) is 14.7%.

The Cost of Equity of Visaka Industries Ltd (VISAKAIND.NS) is 18.40%.

The Cost of Debt of Visaka Industries Ltd (VISAKAIND.NS) is 13.65%.

	Range	Selected
Cost of equity	15.90% - 20.90%	18.40%
Tax rate	26.80% - 36.60%	31.70%
Cost of debt	8.70% - 18.60%	13.65%
WACC	12.1% - 17.3%	14.7%

WACC

VISAKAIND.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.08	1.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.90%	20.90%

Tax rate	26.80%	36.60%
Debt/Equity ratio	0.65	0.65
Cost of debt	8.70%	18.60%

After-tax WACC	12.1%	17.3%


Selected WACC	14.7%

VISAKAIND.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 VISAKAIND.NS:

cost_of_equity (18.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.08) + 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.