WONDERLA.NS WACC - Weighted Average Cost of Capital

The WACC of Wonderla Holidays Ltd (WONDERLA.NS) is 12.0%.

The Cost of Equity of Wonderla Holidays Ltd (WONDERLA.NS) is 11.95%.

The Cost of Debt of Wonderla Holidays Ltd (WONDERLA.NS) is 9.15%.

	Range	Selected
Cost of equity	10.60% - 13.30%	11.95%
Tax rate	25.10% - 25.20%	25.15%
Cost of debt	7.50% - 10.80%	9.15%
WACC	10.6% - 13.3%	12.0%

WACC

WONDERLA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.46	0.59

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	13.30%

Tax rate	25.10%	25.20%
Debt/Equity ratio	0	0
Cost of debt	7.50%	10.80%

After-tax WACC	10.6%	13.3%


Selected WACC	12.0%

WONDERLA.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 WONDERLA.NS:

cost_of_equity (11.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.46) + 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.