GINNIFILA.NS WACC - Weighted Average Cost of Capital

The WACC of Ginni Filaments Ltd (GINNIFILA.NS) is 12.3%.

The Cost of Equity of Ginni Filaments Ltd (GINNIFILA.NS) is 13.55%.

The Cost of Debt of Ginni Filaments Ltd (GINNIFILA.NS) is 6.70%.

	Range	Selected
Cost of equity	11.90% - 15.20%	13.55%
Tax rate	12.00% - 14.30%	13.15%
Cost of debt	5.90% - 7.50%	6.70%
WACC	10.8% - 13.8%	12.3%

WACC

GINNIFILA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.61	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	15.20%

Tax rate	12.00%	14.30%
Debt/Equity ratio	0.19	0.19
Cost of debt	5.90%	7.50%

After-tax WACC	10.8%	13.8%


Selected WACC	12.3%

GINNIFILA.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 GINNIFILA.NS:

cost_of_equity (13.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.61) + 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.