KEYFINSERV.NS WACC - Weighted Average Cost of Capital

The WACC of Keynote Financial Services Ltd (KEYFINSERV.NS) is 13.3%.

The Cost of Equity of Keynote Financial Services Ltd (KEYFINSERV.NS) is 13.30%.

The Cost of Debt of Keynote Financial Services Ltd (KEYFINSERV.NS) is 6.55%.

	Range	Selected
Cost of equity	12.00% - 14.60%	13.30%
Tax rate	14.60% - 17.70%	16.15%
Cost of debt	5.60% - 7.50%	6.55%
WACC	11.9% - 14.6%	13.3%

WACC

KEYFINSERV.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.61	0.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.00%	14.60%

Tax rate	14.60%	17.70%
Debt/Equity ratio	0	0
Cost of debt	5.60%	7.50%

After-tax WACC	11.9%	14.6%


Selected WACC	13.3%

KEYFINSERV.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 KEYFINSERV.NS:

cost_of_equity (13.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.61) + 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.