ALBERTDAVD.NS WACC - Weighted Average Cost of Capital

The WACC of Albert David Ltd (ALBERTDAVD.NS) is 12.2%.

The Cost of Equity of Albert David Ltd (ALBERTDAVD.NS) is 12.35%.

The Cost of Debt of Albert David Ltd (ALBERTDAVD.NS) is 8.10%.

	Range	Selected
Cost of equity	11.30% - 13.40%	12.35%
Tax rate	24.30% - 26.80%	25.55%
Cost of debt	7.50% - 8.70%	8.10%
WACC	11.2% - 13.3%	12.2%

WACC

ALBERTDAVD.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.53	0.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	13.40%

Tax rate	24.30%	26.80%
Debt/Equity ratio	0.03	0.03
Cost of debt	7.50%	8.70%

After-tax WACC	11.2%	13.3%


Selected WACC	12.2%

ALBERTDAVD.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 ALBERTDAVD.NS:

cost_of_equity (12.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.53) + 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.