VSTIND.NS WACC - Weighted Average Cost of Capital
The WACC of VST Industries Ltd (VSTIND.NS) is 10.9%.
| Range | Selected | |
| Cost of equity | 14.5% - 21.3% | 17.9% |
| Tax rate | 23.7% - 24.3% | 24% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.2% - 12.5% | 10.9% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.92 | 1.44 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.5% | 21.3% |
| Tax rate | 23.7% | 24.3% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.2% | 12.5% |
| Selected WACC | 10.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VSTIND.NS | VST Industries Ltd | 1.1 | 1.18 | 0.64 |
| 526723.BO | NTC Industries Ltd | 0.16 | 1.26 | 1.12 |
| 603429.SS | Anhui Genuine New Materials Co Ltd | 0.02 | 1.43 | 1.41 |
| BAT.KL | British American Tobacco (Malaysia) Bhd | 0.33 | 0.54 | 0.43 |
| CLC.VN | Cat Loi JSC | 0.5 | 0.45 | 0.33 |
| GODFRYPHLP.NS | Godfrey Phillips India Ltd | 0.01 | 1.3 | 1.3 |
| GOLDENTOBC.NS | Golden Tobacco Ltd | 0.03 | 0.22 | 0.22 |
| ITC.NS | ITC Ltd | 0 | 0.55 | 0.55 |
| ITIC.JK | Indonesian Tobacco Tbk PT | 0.74 | 0.38 | 0.24 |
| RMBA.JK | Bentoel International Investama Tbk PT | 0 | 0.87 | 0.87 |
| WIIM.JK | Wismilak Inti Makmur Tbk PT | 0.22 | 1.23 | 1.05 |
| Low | High | |
| Unlevered beta | 0.55 | 0.87 |
| Relevered beta | 0.88 | 1.66 |
| Adjusted relevered beta | 0.92 | 1.44 |
VSTIND.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 VSTIND.NS:
cost_of_equity (17.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.92) + 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.