523550.BO WACC - Weighted Average Cost of Capital

The WACC of Krypton Industries Ltd (523550.BO) is 12.1%.

The Cost of Equity of Krypton Industries Ltd (523550.BO) is 13.70%.

The Cost of Debt of Krypton Industries Ltd (523550.BO) is 10.75%.

	Range	Selected
Cost of equity	12.60% - 14.80%	13.70%
Tax rate	25.40% - 37.40%	31.40%
Cost of debt	10.50% - 11.00%	10.75%
WACC	11.4% - 12.8%	12.1%

WACC

523550.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.69	0.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.60%	14.80%

Tax rate	25.40%	37.40%
Debt/Equity ratio	0.33	0.33
Cost of debt	10.50%	11.00%

After-tax WACC	11.4%	12.8%


Selected WACC	12.1%

523550.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 523550.BO:

cost_of_equity (13.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.69) + 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.