KINGFA.NS WACC - Weighted Average Cost of Capital

The WACC of Kingfa Science and Technology (India) Ltd (KINGFA.NS) is 15.3%.

The Cost of Equity of Kingfa Science and Technology (India) Ltd (KINGFA.NS) is 15.45%.

The Cost of Debt of Kingfa Science and Technology (India) Ltd (KINGFA.NS) is 8.50%.

	Range	Selected
Cost of equity	13.70% - 17.20%	15.45%
Tax rate	25.80% - 26.00%	25.90%
Cost of debt	7.50% - 9.50%	8.50%
WACC	13.6% - 17.1%	15.3%

WACC

KINGFA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.82	1

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.70%	17.20%

Tax rate	25.80%	26.00%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.50%	9.50%

After-tax WACC	13.6%	17.1%


Selected WACC	15.3%

KINGFA.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 KINGFA.NS:

cost_of_equity (15.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.82) + 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.