KALPATPOWR.NS WACC - Weighted Average Cost of Capital

The WACC of Kalpataru Power Transmission Ltd (KALPATPOWR.NS) is 12.4%.

The Cost of Equity of Kalpataru Power Transmission Ltd (KALPATPOWR.NS) is 13.60%.

The Cost of Debt of Kalpataru Power Transmission Ltd (KALPATPOWR.NS) is 12.90%.

	Range	Selected
Cost of equity	12.20% - 15.00%	13.60%
Tax rate	28.60% - 30.40%	29.50%
Cost of debt	12.60% - 13.20%	12.90%
WACC	11.3% - 13.4%	12.4%

WACC

KALPATPOWR.NS WACC calculation

Category	Low	High

Long-term bond rate	7.2%	7.7%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.57	0.69

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.20%	15.00%

Tax rate	28.60%	30.40%
Debt/Equity ratio	0.37	0.37
Cost of debt	12.60%	13.20%

After-tax WACC	11.3%	13.4%


Selected WACC	12.4%

KALPATPOWR.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 KALPATPOWR.NS:

cost_of_equity (13.60%) = risk_free_rate (7.45%) + equity_risk_premium (9.30%) * adjusted_beta (0.57) + 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.