MATRIMONY.NS WACC - Weighted Average Cost of Capital

The WACC of Matrimony.Com Ltd (MATRIMONY.NS) is 11.0%.

The Cost of Equity of Matrimony.Com Ltd (MATRIMONY.NS) is 11.30%.

The Cost of Debt of Matrimony.Com Ltd (MATRIMONY.NS) is 8.15%.

	Range	Selected
Cost of equity	10.10% - 12.50%	11.30%
Tax rate	22.70% - 23.70%	23.20%
Cost of debt	8.10% - 8.20%	8.15%
WACC	9.9% - 12.1%	11.0%

WACC

MATRIMONY.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.39	0.5

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.10%	12.50%

Tax rate	22.70%	23.70%
Debt/Equity ratio	0.06	0.06
Cost of debt	8.10%	8.20%

After-tax WACC	9.9%	12.1%


Selected WACC	11.0%

MATRIMONY.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 MATRIMONY.NS:

cost_of_equity (11.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.39) + 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.