KRISHANA.NS WACC - Weighted Average Cost of Capital

The WACC of Krishana Phoschem Ltd (KRISHANA.NS) is 12.0%.

The Cost of Equity of Krishana Phoschem Ltd (KRISHANA.NS) is 12.65%.

The Cost of Debt of Krishana Phoschem Ltd (KRISHANA.NS) is 10.30%.

	Range	Selected
Cost of equity	10.30% - 15.00%	12.65%
Tax rate	31.10% - 31.20%	31.15%
Cost of debt	7.90% - 12.70%	10.30%
WACC	9.8% - 14.3%	12.0%

WACC

KRISHANA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.41	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.30%	15.00%

Tax rate	31.10%	31.20%
Debt/Equity ratio	0.13	0.13
Cost of debt	7.90%	12.70%

After-tax WACC	9.8%	14.3%


Selected WACC	12.0%

KRISHANA.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 KRISHANA.NS:

cost_of_equity (12.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.41) + 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.