WANBURY.NS WACC - Weighted Average Cost of Capital

The WACC of Wanbury Ltd (WANBURY.NS) is 17.0%.

The Cost of Equity of Wanbury Ltd (WANBURY.NS) is 16.45%.

The Cost of Debt of Wanbury Ltd (WANBURY.NS) is 20.35%.

	Range	Selected
Cost of equity	13.80% - 19.10%	16.45%
Tax rate	0.90% - 1.30%	1.10%
Cost of debt	12.10% - 28.60%	20.35%
WACC	13.5% - 20.5%	17.0%

WACC

WANBURY.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.83	1.2

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.80%	19.10%

Tax rate	0.90%	1.30%
Debt/Equity ratio	0.19	0.19
Cost of debt	12.10%	28.60%

After-tax WACC	13.5%	20.5%


Selected WACC	17.0%

WANBURY.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 WANBURY.NS:

cost_of_equity (16.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.83) + 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.