KOPRAN.NS
Kopran Ltd
Price:  
176.67 
INR
Volume:  
116,817.00
India | Pharmaceuticals
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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.