ITDCEM.NS WACC - Weighted Average Cost of Capital

The WACC of ITD Cementation India Ltd (ITDCEM.NS) is 15.4%.

The Cost of Equity of ITD Cementation India Ltd (ITDCEM.NS) is 15.45%.

The Cost of Debt of ITD Cementation India Ltd (ITDCEM.NS) is 20.90%.

	Range	Selected
Cost of equity	13.70% - 17.20%	15.45%
Tax rate	25.90% - 27.00%	26.45%
Cost of debt	9.10% - 32.70%	20.90%
WACC	13.3% - 17.6%	15.4%

WACC

ITDCEM.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.82	1

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.70%	17.20%

Tax rate	25.90%	27.00%
Debt/Equity ratio	0.07	0.07
Cost of debt	9.10%	32.70%

After-tax WACC	13.3%	17.6%


Selected WACC	15.4%

ITDCEM.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 ITDCEM.NS:

cost_of_equity (15.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.82) + 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.