DGCONTENT.NS WACC - Weighted Average Cost of Capital

The WACC of Digicontent Ltd (DGCONTENT.NS) is 12.9%.

The Cost of Equity of Digicontent Ltd (DGCONTENT.NS) is 17.60%.

The Cost of Debt of Digicontent Ltd (DGCONTENT.NS) is 9.75%.

	Range	Selected
Cost of equity	16.10% - 19.10%	17.60%
Tax rate	33.80% - 35.90%	34.85%
Cost of debt	9.00% - 10.50%	9.75%
WACC	11.9% - 14.0%	12.9%

WACC

DGCONTENT.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.11	1.21

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.10%	19.10%

Tax rate	33.80%	35.90%
Debt/Equity ratio	0.71	0.71
Cost of debt	9.00%	10.50%

After-tax WACC	11.9%	14.0%


Selected WACC	12.9%

DGCONTENT.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 DGCONTENT.NS:

cost_of_equity (17.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.11) + 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.