EXIDEIND.NS WACC - Weighted Average Cost of Capital

The WACC of Exide Industries Ltd (EXIDEIND.NS) is 16.2%.

The Cost of Equity of Exide Industries Ltd (EXIDEIND.NS) is 16.85%.

The Cost of Debt of Exide Industries Ltd (EXIDEIND.NS) is 9.95%.

	Range	Selected
Cost of equity	15.30% - 18.40%	16.85%
Tax rate	28.10% - 29.40%	28.75%
Cost of debt	7.50% - 12.40%	9.95%
WACC	14.6% - 17.8%	16.2%

WACC

EXIDEIND.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.01	1.13

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.30%	18.40%

Tax rate	28.10%	29.40%
Debt/Equity ratio	0.07	0.07
Cost of debt	7.50%	12.40%

After-tax WACC	14.6%	17.8%


Selected WACC	16.2%

EXIDEIND.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 EXIDEIND.NS:

cost_of_equity (16.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.01) + 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.