VOLTAMP.NS WACC - Weighted Average Cost of Capital

The WACC of Voltamp Transformers Ltd (VOLTAMP.NS) is 15.8%.

The Cost of Equity of Voltamp Transformers Ltd (VOLTAMP.NS) is 15.80%.

The Cost of Debt of Voltamp Transformers Ltd (VOLTAMP.NS) is 7.50%.

	Range	Selected
Cost of equity	14.60% - 17.00%	15.80%
Tax rate	23.00% - 23.20%	23.10%
Cost of debt	7.50% - 7.50%	7.50%
WACC	14.6% - 17.0%	15.8%

WACC

VOLTAMP.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	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.60%	17.00%

Tax rate	23.00%	23.20%
Debt/Equity ratio	0	0
Cost of debt	7.50%	7.50%

After-tax WACC	14.6%	17.0%


Selected WACC	15.8%

VOLTAMP.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 VOLTAMP.NS:

cost_of_equity (15.80%) = 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.