KPRMILL.NS WACC - Weighted Average Cost of Capital
The WACC of KPR Mill Ltd (KPRMILL.NS) is 12.4%.
| Range | Selected | |
| Cost of equity | 10.6% - 14.4% | 12.5% |
| Tax rate | 24.3% - 25.0% | 24.65% |
| Cost of debt | 4.8% - 7.5% | 6.15% |
| WACC | 10.5% - 14.3% | 12.4% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.45 | 0.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.6% | 14.4% |
| Tax rate | 24.3% | 25.0% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.8% | 7.5% |
| After-tax WACC | 10.5% | 14.3% |
| Selected WACC | 12.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KPRMILL.NS | KPR Mill Ltd | 0.01 | 0.11 | 0.11 |
| 531847.BO | Asian Star Co Ltd | 0.61 | 0.32 | 0.22 |
| 540715.BO | Sagar Diamonds Ltd | 0.15 | -0.3 | -0.27 |
| 540936.BO | Gautam Gems Ltd | 0.2 | -0.93 | -0.81 |
| LUXIND.NS | Lux Industries Ltd | 0.05 | 1.6 | 1.54 |
| RGL.NS | Renaissance Global Ltd | 0.52 | 1.28 | 0.92 |
| SAFARI.NS | Safari Industries (India) Ltd | 0.01 | 0.31 | 0.31 |
| SUULD.NS | Suumaya Industries Ltd | 18.88 | 1.32 | 0.09 |
| VAIBHAVGBL.NS | Vaibhav Global Ltd | 0.05 | 1.64 | 1.58 |
| VIPIND.NS | V I P Industries Ltd | 0.12 | 1.28 | 1.18 |
| Low | High | |
| Unlevered beta | 0.17 | 0.55 |
| Relevered beta | 0.18 | 0.55 |
| Adjusted relevered beta | 0.45 | 0.7 |
KPRMILL.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 KPRMILL.NS:
cost_of_equity (12.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.45) + 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.