BLKASHYAP.NS WACC - Weighted Average Cost of Capital

The WACC of B L Kashyap and Sons Ltd (BLKASHYAP.NS) is 15.0%.

The Cost of Equity of B L Kashyap and Sons Ltd (BLKASHYAP.NS) is 16.35%.

The Cost of Debt of B L Kashyap and Sons Ltd (BLKASHYAP.NS) is 12.90%.

	Range	Selected
Cost of equity	13.80% - 18.90%	16.35%
Tax rate	26.80% - 38.10%	32.45%
Cost of debt	12.10% - 13.70%	12.90%
WACC	13.0% - 17.0%	15.0%

WACC

BLKASHYAP.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.84	1.18

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.80%	18.90%

Tax rate	26.80%	38.10%
Debt/Equity ratio	0.21	0.21
Cost of debt	12.10%	13.70%

After-tax WACC	13.0%	17.0%


Selected WACC	15.0%

BLKASHYAP.NS'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 BLKASHYAP.NS:

cost_of_equity (16.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.84) + 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.