NITIRAJ.NS WACC - Weighted Average Cost of Capital

The WACC of Nitiraj Engineers Ltd (NITIRAJ.NS) is 13.6%.

The Cost of Equity of Nitiraj Engineers Ltd (NITIRAJ.NS) is 13.55%.

The Cost of Debt of Nitiraj Engineers Ltd (NITIRAJ.NS) is 25.70%.

	Range	Selected
Cost of equity	12.00% - 15.10%	13.55%
Tax rate	26.00% - 27.20%	26.60%
Cost of debt	7.00% - 44.40%	25.70%
WACC	12.0% - 15.1%	13.6%

WACC

NITIRAJ.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.62	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.00%	15.10%

Tax rate	26.00%	27.20%
Debt/Equity ratio	0	0
Cost of debt	7.00%	44.40%

After-tax WACC	12.0%	15.1%


Selected WACC	13.6%

NITIRAJ.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 NITIRAJ.NS:

cost_of_equity (13.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.62) + 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.