KAUSHALYA.NS WACC - Weighted Average Cost of Capital

The WACC of Kaushalya Infrastructure Development Corporation Ltd (KAUSHALYA.NS) is 10.9%.

The Cost of Equity of Kaushalya Infrastructure Development Corporation Ltd (KAUSHALYA.NS) is 17.35%.

The Cost of Debt of Kaushalya Infrastructure Development Corporation Ltd (KAUSHALYA.NS) is 5.75%.

	Range	Selected
Cost of equity	15.00% - 19.70%	17.35%
Tax rate	9.90% - 30.90%	20.40%
Cost of debt	4.00% - 7.50%	5.75%
WACC	9.3% - 12.5%	10.9%

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	0.98	1.28

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.00%	19.70%

Tax rate	9.90%	30.90%
Debt/Equity ratio	1	1
Cost of debt	4.00%	7.50%

After-tax WACC	9.3%	12.5%


Selected WACC	10.9%

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 (17.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.98) + 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.