GENUSPAPER.NS WACC - Weighted Average Cost of Capital
The WACC of Genus Paper & Boards Ltd (GENUSPAPER.NS) is 14.6%.
| Range | Selected | |
| Cost of equity | 13.5% - 17.9% | 15.7% |
| Tax rate | 9.0% - 14.9% | 11.95% |
| Cost of debt | 11.8% - 18.6% | 15.2% |
| WACC | 12.3% - 17.0% | 14.6% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.79 | 1.08 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.5% | 17.9% |
| Tax rate | 9.0% | 14.9% |
| Debt/Equity ratio | 0.78 | 0.78 |
| Cost of debt | 11.8% | 18.6% |
| After-tax WACC | 12.3% | 17.0% |
| Selected WACC | 14.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GENUSPAPER.NS | Genus Paper & Boards Ltd | 0.78 | 1.27 | 0.76 |
| 502587.BO | Nath Industries Ltd | 0.59 | 1.29 | 0.85 |
| 516030.BO | Yash Pakka Limited | 0.22 | 1.23 | 1.03 |
| 516108.BO | South India Paper Mills Ltd | 1.23 | 0.76 | 0.37 |
| 538795.BO | Shree Ajit Pulp and Paper Ltd | 1.64 | 0.52 | 0.21 |
| ASTRON.NS | Astron Paper & Board Mill Ltd | 1.07 | 0.41 | 0.21 |
| MAGNUM.NS | Magnum Ventures Ltd | 1.22 | 1.25 | 0.6 |
| MALUPAPER.NS | Malu Paper Mills Ltd | 1.93 | 1.19 | 0.44 |
| RAMANEWS.NS | Shree Rama Newsprint Ltd | 0.75 | 0.36 | 0.22 |
| STARPAPER.NS | Star Paper Mills Ltd | 0.02 | 1.3 | 1.28 |
| Low | High | |
| Unlevered beta | 0.41 | 0.66 |
| Relevered beta | 0.69 | 1.12 |
| Adjusted relevered beta | 0.79 | 1.08 |
GENUSPAPER.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 GENUSPAPER.NS:
cost_of_equity (15.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.79) + 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.