WHIRLPOOL.NS WACC - Weighted Average Cost of Capital

The WACC of Whirlpool of India Ltd (WHIRLPOOL.NS) is 14.6%.

The Cost of Equity of Whirlpool of India Ltd (WHIRLPOOL.NS) is 14.75%.

The Cost of Debt of Whirlpool of India Ltd (WHIRLPOOL.NS) is 10.70%.

	Range	Selected
Cost of equity	13.20% - 16.30%	14.75%
Tax rate	24.90% - 25.50%	25.20%
Cost of debt	7.50% - 13.90%	10.70%
WACC	13.0% - 16.2%	14.6%

WACC

WHIRLPOOL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.76	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.20%	16.30%

Tax rate	24.90%	25.50%
Debt/Equity ratio	0.03	0.03
Cost of debt	7.50%	13.90%

After-tax WACC	13.0%	16.2%


Selected WACC	14.6%

WHIRLPOOL.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 WHIRLPOOL.NS:

cost_of_equity (14.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.76) + 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.