GENUSPAPER.NS WACC - Weighted Average Cost of Capital

The WACC of Genus Paper & Boards Ltd (GENUSPAPER.NS) is 14.6%.

The Cost of Equity of Genus Paper & Boards Ltd (GENUSPAPER.NS) is 15.70%.

The Cost of Debt of Genus Paper & Boards Ltd (GENUSPAPER.NS) is 15.20%.

	Range	Selected
Cost of equity	13.50% - 17.90%	15.70%
Tax rate	9.00% - 14.90%	11.95%
Cost of debt	11.80% - 18.60%	15.20%
WACC	12.3% - 17.0%	14.6%

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	0.79	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.50%	17.90%

Tax rate	9.00%	14.90%
Debt/Equity ratio	0.78	0.78
Cost of debt	11.80%	18.60%

After-tax WACC	12.3%	17.0%


Selected WACC	14.6%

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.