KABRAEXTRU.NS WACC - Weighted Average Cost of Capital

The WACC of Kabra Extrusion Technik Ltd (KABRAEXTRU.NS) is 14.2%.

The Cost of Equity of Kabra Extrusion Technik Ltd (KABRAEXTRU.NS) is 14.95%.

The Cost of Debt of Kabra Extrusion Technik Ltd (KABRAEXTRU.NS) is 9.00%.

	Range	Selected
Cost of equity	13.80% - 16.10%	14.95%
Tax rate	23.20% - 26.40%	24.80%
Cost of debt	7.80% - 10.20%	9.00%
WACC	13.1% - 15.3%	14.2%

WACC

KABRAEXTRU.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.83	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.80%	16.10%

Tax rate	23.20%	26.40%
Debt/Equity ratio	0.1	0.1
Cost of debt	7.80%	10.20%

After-tax WACC	13.1%	15.3%


Selected WACC	14.2%

KABRAEXTRU.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 KABRAEXTRU.NS:

cost_of_equity (14.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.83) + 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.