WORTH.NS WACC - Weighted Average Cost of Capital

The WACC of Worth Peripherals Ltd (WORTH.NS) is 12.5%.

The Cost of Equity of Worth Peripherals Ltd (WORTH.NS) is 12.65%.

The Cost of Debt of Worth Peripherals Ltd (WORTH.NS) is 11.80%.

	Range	Selected
Cost of equity	11.40% - 13.90%	12.65%
Tax rate	26.90% - 27.80%	27.35%
Cost of debt	7.50% - 16.10%	11.80%
WACC	11.1% - 13.8%	12.5%

WACC

WORTH.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.55	0.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.40%	13.90%

Tax rate	26.90%	27.80%
Debt/Equity ratio	0.05	0.05
Cost of debt	7.50%	16.10%

After-tax WACC	11.1%	13.8%


Selected WACC	12.5%

WORTH.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 WORTH.NS:

cost_of_equity (12.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.55) + 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.