KESORAMIND.NS WACC - Weighted Average Cost of Capital

The WACC of Kesoram Industries Ltd (KESORAMIND.NS) is 8.9%.

The Cost of Equity of Kesoram Industries Ltd (KESORAMIND.NS) is 38.40%.

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

	Range	Selected
Cost of equity	33.30% - 43.50%	38.40%
Tax rate	32.60% - 43.80%	38.20%
Cost of debt	7.50% - 13.90%	10.70%
WACC	7.2% - 10.6%	8.9%

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	3.18	3.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	33.30%	43.50%

Tax rate	32.60%	43.80%
Debt/Equity ratio	11.87	11.87
Cost of debt	7.50%	13.90%

After-tax WACC	7.2%	10.6%


Selected WACC	8.9%

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 (38.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (3.18) + 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.