KSL.NS WACC - Weighted Average Cost of Capital
The WACC of Kalyani Steels Ltd (KSL.NS) is 18.4%.
| Range | Selected | |
| Cost of equity | 16.5% - 19.0% | 17.75% |
| Tax rate | 25.4% - 25.5% | 25.45% |
| Cost of debt | 7.8% - 51.6% | 29.7% |
| WACC | 14.9% - 21.8% | 18.4% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.16 | 1.2 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 16.5% | 19.0% |
| Tax rate | 25.4% | 25.5% |
| Debt/Equity ratio | 0.17 | 0.17 |
| Cost of debt | 7.8% | 51.6% |
| After-tax WACC | 14.9% | 21.8% |
| Selected WACC | 18.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KSL.NS | Kalyani Steels Ltd | 0.17 | 1.3 | 1.16 |
| GALLISPAT.NS | Gallantt Ispat Ltd | 0.18 | 1.09 | 0.97 |
| HITECH.NS | Hi-Tech Pipes Ltd | 0.2 | 1.7 | 1.48 |
| IMFA.NS | Indian Metals and Ferro Alloys Ltd | 0.05 | 1.13 | 1.09 |
| ISMTLTD.NS | ISMT Ltd | 0.05 | 1.14 | 1.1 |
| KAMDHENU.NS | Kamdhenu Ltd | 0 | 1.6 | 1.59 |
| MMFL.NS | MM Forgings Ltd | 0.52 | 1.37 | 0.99 |
| NATNLSTEEL.NS | National Steel and Agro Industries Ltd | 87.46 | -1.58 | -0.02 |
| RKFORGE.NS | Ramkrishna Forgings Ltd | 0.11 | 1.59 | 1.47 |
| VSSL.NS | Vardhman Special Steels Ltd | 0.06 | 1.19 | 1.15 |
| Low | High | |
| Unlevered beta | 1.1 | 1.15 |
| Relevered beta | 1.24 | 1.3 |
| Adjusted relevered beta | 1.16 | 1.2 |
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 (17.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.16) + 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.