ICIL.NS WACC - Weighted Average Cost of Capital

The WACC of Indo Count Industries Ltd (ICIL.NS) is 14.3%.

The Cost of Equity of Indo Count Industries Ltd (ICIL.NS) is 16.10%.

The Cost of Debt of Indo Count Industries Ltd (ICIL.NS) is 9.40%.

	Range	Selected
Cost of equity	14.80% - 17.40%	16.10%
Tax rate	25.70% - 26.20%	25.95%
Cost of debt	8.30% - 10.50%	9.40%
WACC	13.1% - 15.5%	14.3%

WACC

ICIL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.95	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.80%	17.40%

Tax rate	25.70%	26.20%
Debt/Equity ratio	0.24	0.24
Cost of debt	8.30%	10.50%

After-tax WACC	13.1%	15.5%


Selected WACC	14.3%

ICIL.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 ICIL.NS:

cost_of_equity (16.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.95) + 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.