KDDL.NS WACC - Weighted Average Cost of Capital

The WACC of KDDL Ltd (KDDL.NS) is 14.2%.

The Cost of Equity of KDDL Ltd (KDDL.NS) is 14.80%.

The Cost of Debt of KDDL Ltd (KDDL.NS) is 9.05%.

	Range	Selected
Cost of equity	13.20% - 16.40%	14.80%
Tax rate	27.60% - 28.60%	28.10%
Cost of debt	7.90% - 10.20%	9.05%
WACC	12.6% - 15.7%	14.2%

WACC

KDDL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.76	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.20%	16.40%

Tax rate	27.60%	28.60%
Debt/Equity ratio	0.07	0.07
Cost of debt	7.90%	10.20%

After-tax WACC	12.6%	15.7%


Selected WACC	14.2%

KDDL.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 KDDL.NS:

cost_of_equity (14.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.76) + 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.