ZENITHEXPO.NS WACC - Weighted Average Cost of Capital

The WACC of Zenith Exports Ltd (ZENITHEXPO.NS) is 11.7%.

The Cost of Equity of Zenith Exports Ltd (ZENITHEXPO.NS) is 12.05%.

The Cost of Debt of Zenith Exports Ltd (ZENITHEXPO.NS) is 9.10%.

	Range	Selected
Cost of equity	10.80% - 13.30%	12.05%
Tax rate	24.00% - 27.10%	25.55%
Cost of debt	8.60% - 9.60%	9.10%
WACC	10.5% - 12.9%	11.7%

WACC

ZENITHEXPO.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.47	0.58

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.80%	13.30%

Tax rate	24.00%	27.10%
Debt/Equity ratio	0.06	0.06
Cost of debt	8.60%	9.60%

After-tax WACC	10.5%	12.9%


Selected WACC	11.7%

ZENITHEXPO.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 ZENITHEXPO.NS:

cost_of_equity (12.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.47) + 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.