KSOLVES.NS WACC - Weighted Average Cost of Capital
The WACC of Ksolves India Ltd (KSOLVES.NS) is 12.5%.
| Range | Selected | |
| Cost of equity | 11.3% - 13.9% | 12.6% |
| Tax rate | 25.0% - 25.1% | 25.05% |
| Cost of debt | 7.5% - 7.5% | 7.5% |
| WACC | 11.2% - 13.8% | 12.5% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.53 | 0.65 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.3% | 13.9% |
| Tax rate | 25.0% | 25.1% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 7.5% | 7.5% |
| After-tax WACC | 11.2% | 13.8% |
| Selected WACC | 12.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KSOLVES.NS | Ksolves India Ltd | 0.01 | 1.5 | 1.49 |
| 504375.BO | IDream Film Infrastructure Company Ltd | 2.03 | 1.04 | 0.41 |
| 530733.BO | Nova Publications India Ltd | 0.02 | -0.07 | -0.07 |
| 531234.BO | Victory Paper and Boards (India) Ltd | 0.3 | 0.86 | 0.7 |
| 532011.BO | Pooja Entertainment And Films Ltd | 0.03 | -0.2 | -0.2 |
| CADSYS.NS | Cadsys ( India ) Ltd | 0.59 | -0.29 | -0.2 |
| DC2.AX | DC Two Ltd | 1.9 | 0.31 | 0.13 |
| INFOMEDIA.NS | Infomedia Press Ltd | 0.94 | 0.79 | 0.46 |
| MPTODAY.NS | Madhya Pradesh Today Media Ltd | 0.7 | 0.59 | 0.39 |
| NDGL.NS | Naga Dhunseri Group Ltd | 0.59 | 0.71 | 0.49 |
| Low | High | |
| Unlevered beta | 0.28 | 0.43 |
| Relevered beta | 0.3 | 0.48 |
| Adjusted relevered beta | 0.53 | 0.65 |
KSOLVES.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 KSOLVES.NS:
cost_of_equity (12.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.53) + 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.