KAUSHALYA.NS
Kaushalya Infrastructure Development Corporation Ltd
Price:  
890.40 
INR
Volume:  
1,469.00
India | Construction & Engineering
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KAUSHALYA.NS WACC - Weighted Average Cost of Capital

The WACC of Kaushalya Infrastructure Development Corporation Ltd (KAUSHALYA.NS) is 9.0%.

The Cost of Equity of Kaushalya Infrastructure Development Corporation Ltd (KAUSHALYA.NS) is 14.10%.
The Cost of Debt of Kaushalya Infrastructure Development Corporation Ltd (KAUSHALYA.NS) is 5.00%.

Range Selected
Cost of equity 11.10% - 17.10% 14.10%
Tax rate 14.10% - 30.90% 22.50%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.7% - 10.3% 9.0%
WACC

KAUSHALYA.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.51 0.99
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.10% 17.10%
Tax rate 14.10% 30.90%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 7.7% 10.3%
Selected WACC 9.0%

KAUSHALYA.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 KAUSHALYA.NS:

cost_of_equity (14.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.51) + 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.