KABRAEXTRU.NS WACC - Weighted Average Cost of Capital

The WACC of Kabra Extrusion Technik Ltd (KABRAEXTRU.NS) is 16.2%.

The Cost of Equity of Kabra Extrusion Technik Ltd (KABRAEXTRU.NS) is 17.20%.

The Cost of Debt of Kabra Extrusion Technik Ltd (KABRAEXTRU.NS) is 9.60%.

	Range	Selected
Cost of equity	13.90% - 20.50%	17.20%
Tax rate	23.20% - 26.40%	24.80%
Cost of debt	8.10% - 11.10%	9.60%
WACC	13.1% - 19.3%	16.2%

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	0.85	1.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.90%	20.50%

Tax rate	23.20%	26.40%
Debt/Equity ratio	0.11	0.11
Cost of debt	8.10%	11.10%

After-tax WACC	13.1%	19.3%


Selected WACC	16.2%

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 (17.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.85) + 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.