513456.BO WACC - Weighted Average Cost of Capital

The WACC of Kanishk Steel Industries Ltd (513456.BO) is 12.3%.

The Cost of Equity of Kanishk Steel Industries Ltd (513456.BO) is 13.60%.

The Cost of Debt of Kanishk Steel Industries Ltd (513456.BO) is 7.80%.

	Range	Selected
Cost of equity	11.70% - 15.50%	13.60%
Tax rate	26.40% - 32.40%	29.40%
Cost of debt	7.50% - 8.10%	7.80%
WACC	10.8% - 13.9%	12.3%

WACC

513456.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.59	0.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.70%	15.50%

Tax rate	26.40%	32.40%
Debt/Equity ratio	0.19	0.19
Cost of debt	7.50%	8.10%

After-tax WACC	10.8%	13.9%


Selected WACC	12.3%

513456.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 513456.BO:

cost_of_equity (13.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.59) + 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.