526315.BO WACC - Weighted Average Cost of Capital

The WACC of Divyashakti Granites Ltd (526315.BO) is 13.9%.

The Cost of Equity of Divyashakti Granites Ltd (526315.BO) is 14.15%.

The Cost of Debt of Divyashakti Granites Ltd (526315.BO) is 9.90%.

	Range	Selected
Cost of equity	12.20% - 16.10%	14.15%
Tax rate	25.30% - 26.50%	25.90%
Cost of debt	7.60% - 12.20%	9.90%
WACC	11.9% - 15.8%	13.9%

WACC

526315.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.64	0.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.20%	16.10%

Tax rate	25.30%	26.50%
Debt/Equity ratio	0.04	0.04
Cost of debt	7.60%	12.20%

After-tax WACC	11.9%	15.8%


Selected WACC	13.9%

526315.BO'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 526315.BO:

cost_of_equity (14.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.64) + 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.