CUBEXTUB.NS WACC - Weighted Average Cost of Capital

The WACC of Cubex Tubings Ltd (CUBEXTUB.NS) is 11.9%.

The Cost of Equity of Cubex Tubings Ltd (CUBEXTUB.NS) is 11.95%.

The Cost of Debt of Cubex Tubings Ltd (CUBEXTUB.NS) is 15.45%.

	Range	Selected
Cost of equity	9.90% - 14.00%	11.95%
Tax rate	21.80% - 27.40%	24.60%
Cost of debt	8.30% - 22.60%	15.45%
WACC	9.2% - 14.5%	11.9%

WACC

CUBEXTUB.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.37	0.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	14.00%

Tax rate	21.80%	27.40%
Debt/Equity ratio	0.25	0.25
Cost of debt	8.30%	22.60%

After-tax WACC	9.2%	14.5%


Selected WACC	11.9%

CUBEXTUB.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 CUBEXTUB.NS:

cost_of_equity (11.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.37) + 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.