DONEAR.NS WACC - Weighted Average Cost of Capital

The WACC of Donear Industries Ltd (DONEAR.NS) is 11.5%.

The Cost of Equity of Donear Industries Ltd (DONEAR.NS) is 15.45%.

The Cost of Debt of Donear Industries Ltd (DONEAR.NS) is 9.15%.

	Range	Selected
Cost of equity	13.40% - 17.50%	15.45%
Tax rate	26.30% - 27.50%	26.90%
Cost of debt	8.30% - 10.00%	9.15%
WACC	10.1% - 12.9%	11.5%

WACC

DONEAR.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.79	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.40%	17.50%

Tax rate	26.30%	27.50%
Debt/Equity ratio	0.82	0.82
Cost of debt	8.30%	10.00%

After-tax WACC	10.1%	12.9%


Selected WACC	11.5%

DONEAR.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 DONEAR.NS:

cost_of_equity (15.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.79) + 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.