WANBURY.NS WACC - Weighted Average Cost of Capital

The WACC of Wanbury Ltd (WANBURY.NS) is 17.8%.

The Cost of Equity of Wanbury Ltd (WANBURY.NS) is 17.70%.

The Cost of Debt of Wanbury Ltd (WANBURY.NS) is 18.75%.

	Range	Selected
Cost of equity	14.50% - 20.90%	17.70%
Tax rate	0.60% - 0.80%	0.70%
Cost of debt	15.40% - 22.10%	18.75%
WACC	14.6% - 21.1%	17.8%

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	0.92	1.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.50%	20.90%

Tax rate	0.60%	0.80%
Debt/Equity ratio	0.15	0.15
Cost of debt	15.40%	22.10%

After-tax WACC	14.6%	21.1%


Selected WACC	17.8%

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 (17.70%) = 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.