PASHUPATI.NS WACC - Weighted Average Cost of Capital

The WACC of Pashupati Cotspin Ltd (PASHUPATI.NS) is 13.8%.

The Cost of Equity of Pashupati Cotspin Ltd (PASHUPATI.NS) is 12.95%.

The Cost of Debt of Pashupati Cotspin Ltd (PASHUPATI.NS) is 32.15%.

	Range	Selected
Cost of equity	11.30% - 14.60%	12.95%
Tax rate	28.70% - 30.90%	29.80%
Cost of debt	10.00% - 54.30%	32.15%
WACC	11.0% - 16.6%	13.8%

WACC

PASHUPATI.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.54	0.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	14.60%

Tax rate	28.70%	30.90%
Debt/Equity ratio	0.09	0.09
Cost of debt	10.00%	54.30%

After-tax WACC	11.0%	16.6%


Selected WACC	13.8%

PASHUPATI.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 PASHUPATI.NS:

cost_of_equity (12.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.54) + 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.