KOHINOOR.NS WACC - Weighted Average Cost of Capital

The WACC of Kohinoor Foods Ltd (KOHINOOR.NS) is 13.7%.

The Cost of Equity of Kohinoor Foods Ltd (KOHINOOR.NS) is 16.45%.

The Cost of Debt of Kohinoor Foods Ltd (KOHINOOR.NS) is 15.45%.

	Range	Selected
Cost of equity	14.00% - 18.90%	16.45%
Tax rate	10.30% - 14.70%	12.50%
Cost of debt	4.00% - 26.90%	15.45%
WACC	5.2% - 22.3%	13.7%

WACC

KOHINOOR.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.85	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.00%	18.90%

Tax rate	10.30%	14.70%
Debt/Equity ratio	5.46	5.46
Cost of debt	4.00%	26.90%

After-tax WACC	5.2%	22.3%


Selected WACC	13.7%

KOHINOOR.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 KOHINOOR.NS:

cost_of_equity (16.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.85) + 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.