MAITHANALL.NS WACC - Weighted Average Cost of Capital

The WACC of Maithan Alloys Ltd (MAITHANALL.NS) is 15.5%.

The Cost of Equity of Maithan Alloys Ltd (MAITHANALL.NS) is 15.75%.

The Cost of Debt of Maithan Alloys Ltd (MAITHANALL.NS) is 18.60%.

	Range	Selected
Cost of equity	13.80% - 17.70%	15.75%
Tax rate	22.90% - 23.70%	23.30%
Cost of debt	7.50% - 29.70%	18.60%
WACC	12.3% - 18.6%	15.5%

WACC

MAITHANALL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.84	1.06

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.80%	17.70%

Tax rate	22.90%	23.70%
Debt/Equity ratio	0.23	0.23
Cost of debt	7.50%	29.70%

After-tax WACC	12.3%	18.6%


Selected WACC	15.5%

MAITHANALL.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 MAITHANALL.NS:

cost_of_equity (15.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.84) + 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.