WATERBASE.NS WACC - Weighted Average Cost of Capital

The WACC of Waterbase Ltd (WATERBASE.NS) is 16.2%.

The Cost of Equity of Waterbase Ltd (WATERBASE.NS) is 15.55%.

The Cost of Debt of Waterbase Ltd (WATERBASE.NS) is 32.80%.

	Range	Selected
Cost of equity	13.80% - 17.30%	15.55%
Tax rate	31.60% - 35.80%	33.70%
Cost of debt	7.00% - 58.60%	32.80%
WACC	12.8% - 19.5%	16.2%

WACC

WATERBASE.NS WACC calculation

Category	Low	High

Long-term bond rate	7.2%	7.7%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.75	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.80%	17.30%

Tax rate	31.60%	35.80%
Debt/Equity ratio	0.12	0.12
Cost of debt	7.00%	58.60%

After-tax WACC	12.8%	19.5%


Selected WACC	16.2%

WATERBASE.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 WATERBASE.NS:

cost_of_equity (15.55%) = risk_free_rate (7.45%) + equity_risk_premium (9.30%) * adjusted_beta (0.75) + 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.