WEALTH.NS
Wealth First Portfolio Managers Ltd
Price:  
894.50 
INR
Volume:  
2,428.00
India | N/A
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WEALTH.NS WACC - Weighted Average Cost of Capital

The WACC of Wealth First Portfolio Managers Ltd (WEALTH.NS) is 14.6%.

The Cost of Equity of Wealth First Portfolio Managers Ltd (WEALTH.NS) is 12.00%.
The Cost of Debt of Wealth First Portfolio Managers Ltd (WEALTH.NS) is 22.85%.

Range Selected
Cost of equity 11.00% - 13.00% 12.00%
Tax rate 23.50% - 24.70% 24.10%
Cost of debt 7.50% - 38.20% 22.85%
WACC 8.4% - 20.9% 14.6%
WACC

WEALTH.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.5 0.55
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.00% 13.00%
Tax rate 23.50% 24.70%
Debt/Equity ratio 1 1
Cost of debt 7.50% 38.20%
After-tax WACC 8.4% 20.9%
Selected WACC 14.6%

WEALTH.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 WEALTH.NS:

cost_of_equity (12.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.5) + 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.