CUBEXTUB.NS WACC - Weighted Average Cost of Capital

The WACC of Cubex Tubings Ltd (CUBEXTUB.NS) is 10.1%.

The Cost of Equity of Cubex Tubings Ltd (CUBEXTUB.NS) is 10.70%.

The Cost of Debt of Cubex Tubings Ltd (CUBEXTUB.NS) is 10.75%.

	Range	Selected
Cost of equity	9.80% - 11.60%	10.70%
Tax rate	20.60% - 23.50%	22.05%
Cost of debt	9.10% - 12.40%	10.75%
WACC	9.1% - 11.0%	10.1%

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	0.35	0.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	11.60%

Tax rate	20.60%	23.50%
Debt/Equity ratio	0.35	0.35
Cost of debt	9.10%	12.40%

After-tax WACC	9.1%	11.0%


Selected WACC	10.1%

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 (10.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.35) + 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.