514128.BO
Konark Synthetic Ltd
Price:  
33.99 
INR
Volume:  
1,416.00
India | Textiles, Apparel & Luxury Goods
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514128.BO WACC - Weighted Average Cost of Capital

The WACC of Konark Synthetic Ltd (514128.BO) is 14.2%.

The Cost of Equity of Konark Synthetic Ltd (514128.BO) is 15.60%.
The Cost of Debt of Konark Synthetic Ltd (514128.BO) is 14.00%.

Range Selected
Cost of equity 13.40% - 17.80% 15.60%
Tax rate 3.30% - 5.50% 4.40%
Cost of debt 4.10% - 23.90% 14.00%
WACC 7.7% - 20.7% 14.2%
WACC

514128.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.78 1.07
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.40% 17.80%
Tax rate 3.30% 5.50%
Debt/Equity ratio 1.53 1.53
Cost of debt 4.10% 23.90%
After-tax WACC 7.7% 20.7%
Selected WACC 14.2%

514128.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 514128.BO:

cost_of_equity (15.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.78) + 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.