CASTEXTECH.NS WACC - Weighted Average Cost of Capital

The WACC of Castex Technologies Ltd (CASTEXTECH.NS) is 5.6%.

The Cost of Equity of Castex Technologies Ltd (CASTEXTECH.NS) is 668.50%.

The Cost of Debt of Castex Technologies Ltd (CASTEXTECH.NS) is 4.25%.

	Range	Selected
Cost of equity	535.80% - 801.20%	668.50%
Tax rate	30.00% - 31.80%	30.90%
Cost of debt	4.00% - 4.50%	4.25%
WACC	4.9% - 6.3%	5.6%

WACC

CASTEXTECH.NS WACC calculation

Category	Low	High

Long-term bond rate	7.5%	8.0%
Equity market risk premium	6.9%	7.9%
Adjusted beta	76.34	100.09

Additional risk adjustments	0.0%	0.5%
Cost of equity	535.80%	801.20%

Tax rate	30.00%	31.80%
Debt/Equity ratio	248.66	248.66
Cost of debt	4.00%	4.50%

After-tax WACC	4.9%	6.3%


Selected WACC	5.6%

CASTEXTECH.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 CASTEXTECH.NS:

cost_of_equity (668.50%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (76.34) + 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.