KSL.NS
Kalyani Steels Ltd
Price:  
817.00 
INR
Volume:  
190,902.00
India | Metals & Mining
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KSL.NS WACC - Weighted Average Cost of Capital

The WACC of Kalyani Steels Ltd (KSL.NS) is 18.1%.

The Cost of Equity of Kalyani Steels Ltd (KSL.NS) is 17.35%.
The Cost of Debt of Kalyani Steels Ltd (KSL.NS) is 29.70%.

Range Selected
Cost of equity 16.00% - 18.70% 17.35%
Tax rate 25.40% - 25.50% 25.45%
Cost of debt 7.80% - 51.60% 29.70%
WACC 14.6% - 21.6% 18.1%
WACC

KSL.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 1.1 1.17
Additional risk adjustments 0.0% 0.5%
Cost of equity 16.00% 18.70%
Tax rate 25.40% 25.50%
Debt/Equity ratio 0.17 0.17
Cost of debt 7.80% 51.60%
After-tax WACC 14.6% 21.6%
Selected WACC 18.1%

KSL.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 KSL.NS:

cost_of_equity (17.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.1) + 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.