KANPRPLA.NS WACC - Weighted Average Cost of Capital

The WACC of Kanpur Plastipack Ltd (KANPRPLA.NS) is 13.0%.

The Cost of Equity of Kanpur Plastipack Ltd (KANPRPLA.NS) is 18.00%.

The Cost of Debt of Kanpur Plastipack Ltd (KANPRPLA.NS) is 10.25%.

	Range	Selected
Cost of equity	16.00% - 20.00%	18.00%
Tax rate	30.50% - 37.60%	34.05%
Cost of debt	8.40% - 12.10%	10.25%
WACC	11.5% - 14.5%	13.0%

WACC

KANPRPLA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.1	1.31

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.00%	20.00%

Tax rate	30.50%	37.60%
Debt/Equity ratio	0.78	0.78
Cost of debt	8.40%	12.10%

After-tax WACC	11.5%	14.5%


Selected WACC	13.0%

KANPRPLA.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 KANPRPLA.NS:

cost_of_equity (18.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.1) + 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.