521242.BO WACC - Weighted Average Cost of Capital

The WACC of Kandagiri Spinning Millis Ltd (521242.BO) is 9.5%.

The Cost of Equity of Kandagiri Spinning Millis Ltd (521242.BO) is 10.85%.

The Cost of Debt of Kandagiri Spinning Millis Ltd (521242.BO) is 9.45%.

	Range	Selected
Cost of equity	9.50% - 12.20%	10.85%
Tax rate	8.20% - 13.90%	11.05%
Cost of debt	7.00% - 11.90%	9.45%
WACC	7.8% - 11.1%	9.5%

WACC

521242.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.32	0.46

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.50%	12.20%

Tax rate	8.20%	13.90%
Debt/Equity ratio	1.22	1.22
Cost of debt	7.00%	11.90%

After-tax WACC	7.8%	11.1%


Selected WACC	9.5%

521242.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 521242.BO:

cost_of_equity (10.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.32) + 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.