Education

The Definitive WACC Guide for NEPSE Investors

Understanding your **Weighted Average Cost of Capital (WACC)** is the foundation of professional stock tracking in Nepal. Without an accurate WACC, your profit and loss statements are merely guesses.

WACC = (Total Investment Amount + Transaction Costs) / Total Units

Why WACC Matters in NEPSE

In the Nepal share market, corporate actions like **Bonus Issues**, **Rights Offerings**, and **Cash Dividends** significantly impact your average cost. Most casual investors fail to adjust their WACC correctly after these events, leading to inaccurate tax calculations and misleading profit figures.

How NafaGhata Simplifies WACC

Our platform automates the calculation using a strict **FIFO (First-In-First-Out)** auditing method. When you upload your Meroshare trade book, NafaGhata:

WACC for IPOs

For IPOs in Nepal, the par value is typically **NPR 100**. NafaGhata automatically identifies IPO holdings and sets their initial WACC to 100 unless you provide additional purchase details for secondary market additions.