KARDA.NS WACC - Weighted Average Cost of Capital

The WACC of Karda Constructions Ltd (KARDA.NS) is 12.8%.

The Cost of Equity of Karda Constructions Ltd (KARDA.NS) is 13.05%.

The Cost of Debt of Karda Constructions Ltd (KARDA.NS) is 13.85%.

	Range	Selected
Cost of equity	11.30% - 14.80%	13.05%
Tax rate	26.30% - 28.80%	27.55%
Cost of debt	13.50% - 14.20%	13.85%
WACC	11.2% - 14.4%	12.8%

WACC

KARDA.NS WACC calculation

Category	Low	High

Long-term bond rate	7.5%	8.0%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.54	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	14.80%

Tax rate	26.30%	28.80%
Debt/Equity ratio	0.1	0.1
Cost of debt	13.50%	14.20%

After-tax WACC	11.2%	14.4%


Selected WACC	12.8%

KARDA.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 KARDA.NS:

cost_of_equity (13.05%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (0.54) + 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.