WELENT.NS WACC - Weighted Average Cost of Capital

The WACC of Welspun Enterprises Ltd (WELENT.NS) is 16.7%.

The Cost of Equity of Welspun Enterprises Ltd (WELENT.NS) is 18.45%.

The Cost of Debt of Welspun Enterprises Ltd (WELENT.NS) is 10.70%.

	Range	Selected
Cost of equity	15.80% - 21.10%	18.45%
Tax rate	25.50% - 26.60%	26.05%
Cost of debt	8.10% - 13.30%	10.70%
WACC	14.2% - 19.3%	16.7%

WACC

WELENT.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	1.43

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.80%	21.10%

Tax rate	25.50%	26.60%
Debt/Equity ratio	0.2	0.2
Cost of debt	8.10%	13.30%

After-tax WACC	14.2%	19.3%


Selected WACC	16.7%

WELENT.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 WELENT.NS:

cost_of_equity (18.45%) = 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.