KRBL.NS
KRBL Ltd
Price:  
371.85 
INR
Volume:  
417,655.00
India | Food Products
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KRBL.NS WACC - Weighted Average Cost of Capital

The WACC of KRBL Ltd (KRBL.NS) is 16.8%.

The Cost of Equity of KRBL Ltd (KRBL.NS) is 17.35%.
The Cost of Debt of KRBL Ltd (KRBL.NS) is 7.00%.

Range Selected
Cost of equity 16.20% - 18.50% 17.35%
Tax rate 25.50% - 25.50% 25.50%
Cost of debt 6.50% - 7.50% 7.00%
WACC 15.6% - 18.0% 16.8%
WACC

KRBL.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 1.12 1.15
Additional risk adjustments 0.0% 0.5%
Cost of equity 16.20% 18.50%
Tax rate 25.50% 25.50%
Debt/Equity ratio 0.05 0.05
Cost of debt 6.50% 7.50%
After-tax WACC 15.6% 18.0%
Selected WACC 16.8%

KRBL.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 KRBL.NS:

cost_of_equity (17.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.12) + 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.