514322.BO WACC - Weighted Average Cost of Capital

The WACC of Kamadgiri Fashion Ltd (514322.BO) is 12.4%.

The Cost of Equity of Kamadgiri Fashion Ltd (514322.BO) is 13.60%.

The Cost of Debt of Kamadgiri Fashion Ltd (514322.BO) is 13.40%.

	Range	Selected
Cost of equity	11.40% - 15.80%	13.60%
Tax rate	26.60% - 29.10%	27.85%
Cost of debt	11.40% - 15.40%	13.40%
WACC	10.4% - 14.3%	12.4%

WACC

514322.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	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.40%	15.80%

Tax rate	26.60%	29.10%
Debt/Equity ratio	0.44	0.44
Cost of debt	11.40%	15.40%

After-tax WACC	10.4%	14.3%


Selected WACC	12.4%

514322.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 514322.BO:

cost_of_equity (13.60%) = 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.