CCL.NS WACC - Weighted Average Cost of Capital

The WACC of CCL Products India Ltd (CCL.NS) is 13.4%.

The Cost of Equity of CCL Products India Ltd (CCL.NS) is 14.25%.

The Cost of Debt of CCL Products India Ltd (CCL.NS) is 7.50%.

	Range	Selected
Cost of equity	12.90% - 15.60%	14.25%
Tax rate	10.90% - 13.40%	12.15%
Cost of debt	6.90% - 8.10%	7.50%
WACC	12.1% - 14.7%	13.4%

WACC

CCL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.72	0.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.90%	15.60%

Tax rate	10.90%	13.40%
Debt/Equity ratio	0.13	0.13
Cost of debt	6.90%	8.10%

After-tax WACC	12.1%	14.7%


Selected WACC	13.4%

CCL.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 CCL.NS:

cost_of_equity (14.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.72) + 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.