KOPRAN.NS WACC - Weighted Average Cost of Capital

The WACC of Kopran Ltd (KOPRAN.NS) is 15.1%.

The Cost of Equity of Kopran Ltd (KOPRAN.NS) is 16.05%.

The Cost of Debt of Kopran Ltd (KOPRAN.NS) is 8.90%.

	Range	Selected
Cost of equity	13.90% - 18.20%	16.05%
Tax rate	25.00% - 25.50%	25.25%
Cost of debt	8.10% - 9.70%	8.90%
WACC	13.1% - 17.1%	15.1%

WACC

KOPRAN.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	1.11

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.90%	18.20%

Tax rate	25.00%	25.50%
Debt/Equity ratio	0.11	0.11
Cost of debt	8.10%	9.70%

After-tax WACC	13.1%	17.1%


Selected WACC	15.1%

KOPRAN.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 KOPRAN.NS:

cost_of_equity (16.05%) = 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.