FILATEX.NS WACC - Weighted Average Cost of Capital

The WACC of Filatex India Ltd (FILATEX.NS) is 14.0%.

The Cost of Equity of Filatex India Ltd (FILATEX.NS) is 14.70%.

The Cost of Debt of Filatex India Ltd (FILATEX.NS) is 6.55%.

	Range	Selected
Cost of equity	13.30% - 16.10%	14.70%
Tax rate	26.40% - 28.20%	27.30%
Cost of debt	5.60% - 7.50%	6.55%
WACC	12.7% - 15.4%	14.0%

WACC

FILATEX.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.77	0.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.30%	16.10%

Tax rate	26.40%	28.20%
Debt/Equity ratio	0.07	0.07
Cost of debt	5.60%	7.50%

After-tax WACC	12.7%	15.4%


Selected WACC	14.0%

FILATEX.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 FILATEX.NS:

cost_of_equity (14.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.77) + 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.