500388.BO WACC - Weighted Average Cost of Capital

The WACC of Shree Krishna Paper Mills & Industries Ltd (500388.BO) is 11.9%.

The Cost of Equity of Shree Krishna Paper Mills & Industries Ltd (500388.BO) is 12.70%.

The Cost of Debt of Shree Krishna Paper Mills & Industries Ltd (500388.BO) is 14.20%.

	Range	Selected
Cost of equity	11.30% - 14.10%	12.70%
Tax rate	23.90% - 30.90%	27.40%
Cost of debt	12.10% - 16.30%	14.20%
WACC	10.6% - 13.2%	11.9%

WACC

500388.BO 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	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	14.10%

Tax rate	23.90%	30.90%
Debt/Equity ratio	0.47	0.47
Cost of debt	12.10%	16.30%

After-tax WACC	10.6%	13.2%


Selected WACC	11.9%

500388.BO'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 500388.BO:

cost_of_equity (12.70%) = 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.