KELLTONTEC.NS
Kellton Tech Solutions Ltd
Price:  
106.39 
INR
Volume:  
329,715.00
India | IT Services
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KELLTONTEC.NS WACC - Weighted Average Cost of Capital

The WACC of Kellton Tech Solutions Ltd (KELLTONTEC.NS) is 13.6%.

The Cost of Equity of Kellton Tech Solutions Ltd (KELLTONTEC.NS) is 14.55%.
The Cost of Debt of Kellton Tech Solutions Ltd (KELLTONTEC.NS) is 9.20%.

Range Selected
Cost of equity 11.70% - 17.40% 14.55%
Tax rate 13.70% - 16.50% 15.10%
Cost of debt 8.10% - 10.30% 9.20%
WACC 11.1% - 16.2% 13.6%
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 0.58 1.02
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.70% 17.40%
Tax rate 13.70% 16.50%
Debt/Equity ratio 0.15 0.15
Cost of debt 8.10% 10.30%
After-tax WACC 11.1% 16.2%
Selected WACC 13.6%

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 (14.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.58) + 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.