WINDMACHIN.NS WACC - Weighted Average Cost of Capital

The WACC of Windsor Machines Ltd (WINDMACHIN.NS) is 14.6%.

The Cost of Equity of Windsor Machines Ltd (WINDMACHIN.NS) is 14.55%.

The Cost of Debt of Windsor Machines Ltd (WINDMACHIN.NS) is 29.20%.

	Range	Selected
Cost of equity	13.40% - 15.70%	14.55%
Tax rate	30.00% - 30.00%	30.00%
Cost of debt	26.90% - 31.50%	29.20%
WACC	13.5% - 15.8%	14.6%

WACC

WINDMACHIN.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.79	0.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.40%	15.70%

Tax rate	30.00%	30.00%
Debt/Equity ratio	0.01	0.01
Cost of debt	26.90%	31.50%

After-tax WACC	13.5%	15.8%


Selected WACC	14.6%

WINDMACHIN.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 WINDMACHIN.NS:

cost_of_equity (14.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.79) + 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.