KESORAMIND.NS WACC - Weighted Average Cost of Capital

The WACC of Kesoram Industries Ltd (KESORAMIND.NS) is 10.7%.

The Cost of Equity of Kesoram Industries Ltd (KESORAMIND.NS) is 46.00%.

The Cost of Debt of Kesoram Industries Ltd (KESORAMIND.NS) is 10.90%.

	Range	Selected
Cost of equity	39.00% - 53.00%	46.00%
Tax rate	17.30% - 32.60%	24.95%
Cost of debt	7.50% - 14.30%	10.90%
WACC	8.6% - 12.9%	10.7%

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	3.86	4.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	39.00%	53.00%

Tax rate	17.30%	32.60%
Debt/Equity ratio	12.35	12.35
Cost of debt	7.50%	14.30%

After-tax WACC	8.6%	12.9%


Selected WACC	10.7%

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 (46.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (3.86) + 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.