INDLMETER.NS WACC - Weighted Average Cost of Capital

The WACC of IMP Powers Ltd (INDLMETER.NS) is 7.1%.

The Cost of Equity of IMP Powers Ltd (INDLMETER.NS) is 221.95%.

The Cost of Debt of IMP Powers Ltd (INDLMETER.NS) is 5.50%.

	Range	Selected
Cost of equity	170.00% - 273.90%	221.95%
Tax rate	30.00% - 30.00%	30.00%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.3% - 8.9%	7.1%

WACC

INDLMETER.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	19.63	28.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	170.00%	273.90%

Tax rate	30.00%	30.00%
Debt/Equity ratio	65.47	65.47
Cost of debt	4.00%	7.00%

After-tax WACC	5.3%	8.9%


Selected WACC	7.1%

INDLMETER.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 INDLMETER.NS:

cost_of_equity (221.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (19.63) + 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.