WELCORP.NS WACC - Weighted Average Cost of Capital

The WACC of Welspun Corp Ltd (WELCORP.NS) is 15.9%.

The Cost of Equity of Welspun Corp Ltd (WELCORP.NS) is 17.05%.

The Cost of Debt of Welspun Corp Ltd (WELCORP.NS) is 7.25%.

	Range	Selected
Cost of equity	15.80% - 18.30%	17.05%
Tax rate	29.00% - 34.60%	31.80%
Cost of debt	6.60% - 7.90%	7.25%
WACC	14.7% - 17.1%	15.9%

WACC

WELCORP.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.07	1.12

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.80%	18.30%

Tax rate	29.00%	34.60%
Debt/Equity ratio	0.1	0.1
Cost of debt	6.60%	7.90%

After-tax WACC	14.7%	17.1%


Selected WACC	15.9%

WELCORP.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 WELCORP.NS:

cost_of_equity (17.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.07) + 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.