VISHAL.NS WACC - Weighted Average Cost of Capital

The WACC of Vishal Fabrics Ltd (VISHAL.NS) is 12.3%.

The Cost of Equity of Vishal Fabrics Ltd (VISHAL.NS) is 14.60%.

The Cost of Debt of Vishal Fabrics Ltd (VISHAL.NS) is 12.50%.

	Range	Selected
Cost of equity	13.20% - 16.00%	14.60%
Tax rate	24.90% - 27.80%	26.35%
Cost of debt	8.40% - 16.60%	12.50%
WACC	10.3% - 14.3%	12.3%

WACC

VISHAL.NS WACC calculation

Category	Low	High

Long-term bond rate	7.2%	7.7%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.68	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.20%	16.00%

Tax rate	24.90%	27.80%
Debt/Equity ratio	0.73	0.73
Cost of debt	8.40%	16.60%

After-tax WACC	10.3%	14.3%


Selected WACC	12.3%

VISHAL.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 VISHAL.NS:

cost_of_equity (14.60%) = risk_free_rate (7.45%) + equity_risk_premium (9.30%) * adjusted_beta (0.68) + 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.