GRANULES.NS WACC - Weighted Average Cost of Capital

The WACC of Granules India Ltd (GRANULES.NS) is 11.8%.

The Cost of Equity of Granules India Ltd (GRANULES.NS) is 12.25%.

The Cost of Debt of Granules India Ltd (GRANULES.NS) is 8.15%.

	Range	Selected
Cost of equity	11.00% - 13.50%	12.25%
Tax rate	24.60% - 25.30%	24.95%
Cost of debt	7.80% - 8.50%	8.15%
WACC	10.7% - 13.0%	11.8%

WACC

GRANULES.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.5	0.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.00%	13.50%

Tax rate	24.60%	25.30%
Debt/Equity ratio	0.08	0.08
Cost of debt	7.80%	8.50%

After-tax WACC	10.7%	13.0%


Selected WACC	11.8%

GRANULES.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 GRANULES.NS:

cost_of_equity (12.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.5) + 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.