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 14.85%.

The Cost of Debt of KDDL Ltd (KDDL.NS) is 8.65%.

	Range	Selected
Cost of equity	13.40% - 16.30%	14.85%
Tax rate	28.70% - 31.10%	29.90%
Cost of debt	7.80% - 9.50%	8.65%
WACC	12.8% - 15.6%	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	0.78	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.40%	16.30%

Tax rate	28.70%	31.10%
Debt/Equity ratio	0.08	0.08
Cost of debt	7.80%	9.50%

After-tax WACC	12.8%	15.6%


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 (14.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.78) + 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.