KESORAMIND.NS WACC - Weighted Average Cost of Capital

The WACC of Kesoram Industries Ltd (KESORAMIND.NS) is 9.1%.

The Cost of Equity of Kesoram Industries Ltd (KESORAMIND.NS) is 42.90%.

The Cost of Debt of Kesoram Industries Ltd (KESORAMIND.NS) is 10.70%.

	Range	Selected
Cost of equity	37.30% - 48.50%	42.90%
Tax rate	32.60% - 43.80%	38.20%
Cost of debt	7.50% - 13.90%	10.70%
WACC	7.4% - 10.8%	9.1%

WACC

KESORAMIND.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	3.66	4.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	37.30%	48.50%

Tax rate	32.60%	43.80%
Debt/Equity ratio	12.61	12.61
Cost of debt	7.50%	13.90%

After-tax WACC	7.4%	10.8%


Selected WACC	9.1%

KESORAMIND.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 KESORAMIND.NS:

cost_of_equity (42.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (3.66) + 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.