PODDARHOUS.NS WACC - Weighted Average Cost of Capital

The WACC of Poddar Housing and Development Ltd (PODDARHOUS.NS) is 16.3%.

The Cost of Equity of Poddar Housing and Development Ltd (PODDARHOUS.NS) is 17.65%.

The Cost of Debt of Poddar Housing and Development Ltd (PODDARHOUS.NS) is 21.20%.

	Range	Selected
Cost of equity	13.90% - 21.40%	17.65%
Tax rate	22.60% - 24.10%	23.35%
Cost of debt	15.50% - 26.90%	21.20%
WACC	12.1% - 20.5%	16.3%

WACC

PODDARHOUS.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.84	1.45

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.90%	21.40%

Tax rate	22.60%	24.10%
Debt/Equity ratio	10.79	10.79
Cost of debt	15.50%	26.90%

After-tax WACC	12.1%	20.5%


Selected WACC	16.3%

PODDARHOUS.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 PODDARHOUS.NS:

cost_of_equity (17.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.84) + 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.