KELLTONTEC.NS WACC - Weighted Average Cost of Capital

The WACC of Kellton Tech Solutions Ltd (KELLTONTEC.NS) is 14.7%.

The Cost of Equity of Kellton Tech Solutions Ltd (KELLTONTEC.NS) is 15.65%.

The Cost of Debt of Kellton Tech Solutions Ltd (KELLTONTEC.NS) is 9.20%.

	Range	Selected
Cost of equity	13.40% - 17.90%	15.65%
Tax rate	13.70% - 16.50%	15.10%
Cost of debt	8.10% - 10.30%	9.20%
WACC	12.6% - 16.8%	14.7%

WACC

KELLTONTEC.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	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.40%	17.90%

Tax rate	13.70%	16.50%
Debt/Equity ratio	0.14	0.14
Cost of debt	8.10%	10.30%

After-tax WACC	12.6%	16.8%


Selected WACC	14.7%

KELLTONTEC.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 KELLTONTEC.NS:

cost_of_equity (15.65%) = 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.