EIFFL.NS WACC - Weighted Average Cost of Capital

The WACC of Euro India Fresh Foods Ltd (EIFFL.NS) is 11.2%.

The Cost of Equity of Euro India Fresh Foods Ltd (EIFFL.NS) is 11.65%.

The Cost of Debt of Euro India Fresh Foods Ltd (EIFFL.NS) is 7.25%.

	Range	Selected
Cost of equity	10.10% - 13.20%	11.65%
Tax rate	25.90% - 28.60%	27.25%
Cost of debt	4.00% - 10.50%	7.25%
WACC	9.6% - 12.8%	11.2%

WACC

EIFFL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.39	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.10%	13.20%

Tax rate	25.90%	28.60%
Debt/Equity ratio	0.07	0.07
Cost of debt	4.00%	10.50%

After-tax WACC	9.6%	12.8%


Selected WACC	11.2%

EIFFL.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 EIFFL.NS:

cost_of_equity (11.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.39) + 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.