VISHNU.NS WACC - Weighted Average Cost of Capital

The WACC of Vishnu Chemicals Ltd (VISHNU.NS) is 15.8%.

The Cost of Equity of Vishnu Chemicals Ltd (VISHNU.NS) is 16.95%.

The Cost of Debt of Vishnu Chemicals Ltd (VISHNU.NS) is 7.85%.

	Range	Selected
Cost of equity	15.30% - 18.60%	16.95%
Tax rate	26.50% - 27.00%	26.75%
Cost of debt	7.60% - 8.10%	7.85%
WACC	14.3% - 17.4%	15.8%

WACC

VISHNU.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.01	1.16

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.30%	18.60%

Tax rate	26.50%	27.00%
Debt/Equity ratio	0.11	0.11
Cost of debt	7.60%	8.10%

After-tax WACC	14.3%	17.4%


Selected WACC	15.8%

VISHNU.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 VISHNU.NS:

cost_of_equity (16.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.01) + 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.