GENUSPAPER.NS WACC - Weighted Average Cost of Capital

The WACC of Genus Paper & Boards Ltd (GENUSPAPER.NS) is 14.1%.

The Cost of Equity of Genus Paper & Boards Ltd (GENUSPAPER.NS) is 14.85%.

The Cost of Debt of Genus Paper & Boards Ltd (GENUSPAPER.NS) is 14.65%.

	Range	Selected
Cost of equity	12.70% - 17.00%	14.85%
Tax rate	9.00% - 14.90%	11.95%
Cost of debt	10.70% - 18.60%	14.65%
WACC	11.5% - 16.6%	14.1%

WACC

GENUSPAPER.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.71	0.99

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.70%	17.00%

Tax rate	9.00%	14.90%
Debt/Equity ratio	0.66	0.66
Cost of debt	10.70%	18.60%

After-tax WACC	11.5%	16.6%


Selected WACC	14.1%

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 (14.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.71) + 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.