EMKAY.NS WACC - Weighted Average Cost of Capital

The WACC of Emkay Global Financial Services Ltd (EMKAY.NS) is 15.6%.

The Cost of Equity of Emkay Global Financial Services Ltd (EMKAY.NS) is 16.15%.

The Cost of Debt of Emkay Global Financial Services Ltd (EMKAY.NS) is 14.50%.

	Range	Selected
Cost of equity	15.00% - 17.30%	16.15%
Tax rate	19.20% - 25.70%	22.45%
Cost of debt	10.50% - 18.50%	14.50%
WACC	14.3% - 16.9%	15.6%

WACC

EMKAY.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.98	1.02

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.00%	17.30%

Tax rate	19.20%	25.70%
Debt/Equity ratio	0.12	0.12
Cost of debt	10.50%	18.50%

After-tax WACC	14.3%	16.9%


Selected WACC	15.6%

EMKAY.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 EMKAY.NS:

cost_of_equity (16.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.98) + 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.