The WACC of Cox & Kings Ltd (COX&KINGS.NS) is 6.4%.
| Range | Selected | |
| Cost of equity | 100.90% - 330.90% | 215.90% |
| Tax rate | 29.60% - 44.10% | 36.85% |
| Cost of debt | 7.00% - 9.50% | 8.25% |
| WACC | 5.5% - 7.3% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 7.2% | 7.7% |
| Equity market risk premium | 8.8% | 9.8% |
| Adjusted beta | 10.61 | 32.83 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 100.90% | 330.90% |
| Tax rate | 29.60% | 44.10% |
| Debt/Equity ratio | 160.67 | 160.67 |
| Cost of debt | 7.00% | 9.50% |
| After-tax WACC | 5.5% | 7.3% |
| Selected WACC | 6.4% | |
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 COX&KINGS.NS:
cost_of_equity (215.90%) = risk_free_rate (7.45%) + equity_risk_premium (9.30%) * adjusted_beta (10.61) + 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.