535566.BO
KIFS Financial Services Ltd
Price:  
161.1 
INR
Volume:  
879
India | Diversified Financial Services

535566.BO WACC - Weighted Average Cost of Capital

The WACC of KIFS Financial Services Ltd (535566.BO) is 9.6%.

The Cost of Equity of KIFS Financial Services Ltd (535566.BO) is 20.7%.
The Cost of Debt of KIFS Financial Services Ltd (535566.BO) is 5%.

RangeSelected
Cost of equity18.7% - 22.7%20.7%
Tax rate25.5% - 25.6%25.55%
Cost of debt5.0% - 5.0%5%
WACC8.9% - 10.2%9.6%
WACC

535566.BO WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta1.421.59
Additional risk adjustments0.0%0.5%
Cost of equity18.7%22.7%
Tax rate25.5%25.6%
Debt/Equity ratio
1.91.9
Cost of debt5.0%5.0%
After-tax WACC8.9%10.2%
Selected WACC9.6%

535566.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 535566.BO:

cost_of_equity (20.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.42) + 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.