DALBHARAT.NS WACC - Weighted Average Cost of Capital

The WACC of Dalmia Bharat Ltd (DALBHARAT.NS) is 13.8%.

The Cost of Equity of Dalmia Bharat Ltd (DALBHARAT.NS) is 15.30%.

The Cost of Debt of Dalmia Bharat Ltd (DALBHARAT.NS) is 9.20%.

	Range	Selected
Cost of equity	13.20% - 17.40%	15.30%
Tax rate	20.20% - 23.10%	21.65%
Cost of debt	8.60% - 9.80%	9.20%
WACC	12.1% - 15.6%	13.8%

WACC

DALBHARAT.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.77	1.02

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.20%	17.40%

Tax rate	20.20%	23.10%
Debt/Equity ratio	0.22	0.22
Cost of debt	8.60%	9.80%

After-tax WACC	12.1%	15.6%


Selected WACC	13.8%

DALBHARAT.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 DALBHARAT.NS:

cost_of_equity (15.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.77) + 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.