VISHNU.NS WACC - Weighted Average Cost of Capital

The WACC of Vishnu Chemicals Ltd (VISHNU.NS) is 15.3%.

The Cost of Equity of Vishnu Chemicals Ltd (VISHNU.NS) is 16.15%.

The Cost of Debt of Vishnu Chemicals Ltd (VISHNU.NS) is 8.45%.

	Range	Selected
Cost of equity	14.60% - 17.70%	16.15%
Tax rate	25.70% - 26.80%	26.25%
Cost of debt	8.10% - 8.80%	8.45%
WACC	13.8% - 16.8%	15.3%

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	0.93	1.06

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.60%	17.70%

Tax rate	25.70%	26.80%
Debt/Equity ratio	0.09	0.09
Cost of debt	8.10%	8.80%

After-tax WACC	13.8%	16.8%


Selected WACC	15.3%

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 (16.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.93) + 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.