FLEXITUFF.NS WACC - Weighted Average Cost of Capital

The WACC of Flexituff Ventures International Ltd (FLEXITUFF.NS) is 6.8%.

The Cost of Equity of Flexituff Ventures International Ltd (FLEXITUFF.NS) is 73.55%.

The Cost of Debt of Flexituff Ventures International Ltd (FLEXITUFF.NS) is 8.35%.

	Range	Selected
Cost of equity	46.30% - 100.80%	73.55%
Tax rate	26.30% - 31.20%	28.75%
Cost of debt	7.00% - 9.70%	8.35%
WACC	5.7% - 7.9%	6.8%

WACC

FLEXITUFF.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	4.74	9.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	46.30%	100.80%

Tax rate	26.30%	31.20%
Debt/Equity ratio	74.47	74.47
Cost of debt	7.00%	9.70%

After-tax WACC	5.7%	7.9%


Selected WACC	6.8%

FLEXITUFF.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 FLEXITUFF.NS:

cost_of_equity (73.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (4.74) + 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.