NBVENTURES.NS WACC - Weighted Average Cost of Capital

The WACC of Nava Bharat Ventures Ltd (NBVENTURES.NS) is 11.1%.

The Cost of Equity of Nava Bharat Ventures Ltd (NBVENTURES.NS) is 16.35%.

The Cost of Debt of Nava Bharat Ventures Ltd (NBVENTURES.NS) is 8.60%.

	Range	Selected
Cost of equity	14.90% - 17.80%	16.35%
Tax rate	23.90% - 31.50%	27.70%
Cost of debt	8.10% - 9.10%	8.60%
WACC	10.4% - 11.9%	11.1%

WACC

NBVENTURES.NS WACC calculation

Category	Low	High

Long-term bond rate	7.4%	7.9%
Equity market risk premium	6.9%	7.9%
Adjusted beta	1.07	1.18

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.90%	17.80%

Tax rate	23.90%	31.50%
Debt/Equity ratio	1.04	1.04
Cost of debt	8.10%	9.10%

After-tax WACC	10.4%	11.9%


Selected WACC	11.1%

NBVENTURES.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 NBVENTURES.NS:

cost_of_equity (16.35%) = risk_free_rate (7.65%) + equity_risk_premium (7.40%) * adjusted_beta (1.07) + 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.