CENTENKA.NS WACC - Weighted Average Cost of Capital

The WACC of Century Enka Ltd (CENTENKA.NS) is 14.6%.

The Cost of Equity of Century Enka Ltd (CENTENKA.NS) is 14.95%.

The Cost of Debt of Century Enka Ltd (CENTENKA.NS) is 11.70%.

	Range	Selected
Cost of equity	13.80% - 16.10%	14.95%
Tax rate	24.00% - 25.00%	24.50%
Cost of debt	7.50% - 15.90%	11.70%
WACC	13.4% - 15.9%	14.6%

WACC

CENTENKA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.83	0.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.80%	16.10%

Tax rate	24.00%	25.00%
Debt/Equity ratio	0.05	0.05
Cost of debt	7.50%	15.90%

After-tax WACC	13.4%	15.9%


Selected WACC	14.6%

CENTENKA.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 CENTENKA.NS:

cost_of_equity (14.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.83) + 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.