NIPPOBATRY.NS WACC - Weighted Average Cost of Capital

The WACC of Indo National Ltd (NIPPOBATRY.NS) is 15.1%.

The Cost of Equity of Indo National Ltd (NIPPOBATRY.NS) is 17.95%.

The Cost of Debt of Indo National Ltd (NIPPOBATRY.NS) is 7.25%.

	Range	Selected
Cost of equity	15.20% - 20.70%	17.95%
Tax rate	22.50% - 28.70%	25.60%
Cost of debt	7.00% - 7.50%	7.25%
WACC	13.0% - 17.2%	15.1%

WACC

NIPPOBATRY.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.01	1.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.20%	20.70%

Tax rate	22.50%	28.70%
Debt/Equity ratio	0.29	0.29
Cost of debt	7.00%	7.50%

After-tax WACC	13.0%	17.2%


Selected WACC	15.1%

NIPPOBATRY.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 NIPPOBATRY.NS:

cost_of_equity (17.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.01) + 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.