ZUARIGLOB.NS WACC - Weighted Average Cost of Capital

The WACC of Zuari Global Ltd (ZUARIGLOB.NS) is 17.0%.

The Cost of Equity of Zuari Global Ltd (ZUARIGLOB.NS) is 25.40%.

The Cost of Debt of Zuari Global Ltd (ZUARIGLOB.NS) is 18.35%.

	Range	Selected
Cost of equity	21.60% - 29.20%	25.40%
Tax rate	13.50% - 16.90%	15.20%
Cost of debt	11.70% - 25.00%	18.35%
WACC	12.0% - 22.1%	17.0%

WACC

ZUARIGLOB.NS WACC calculation

Category	Low	High

Long-term bond rate	7.5%	8.0%
Equity market risk premium	6.9%	7.9%
Adjusted beta	2.03	2.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	21.60%	29.20%

Tax rate	13.50%	16.90%
Debt/Equity ratio	5.15	5.15
Cost of debt	11.70%	25.00%

After-tax WACC	12.0%	22.1%


Selected WACC	17.0%

ZUARIGLOB.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 ZUARIGLOB.NS:

cost_of_equity (25.40%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (2.03) + 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.