KSOLVES.NS WACC - Weighted Average Cost of Capital

The WACC of Ksolves India Ltd (KSOLVES.NS) is 11.8%.

The Cost of Equity of Ksolves India Ltd (KSOLVES.NS) is 11.95%.

The Cost of Debt of Ksolves India Ltd (KSOLVES.NS) is 7.50%.

	Range	Selected
Cost of equity	10.20% - 13.70%	11.95%
Tax rate	25.00% - 25.10%	25.05%
Cost of debt	7.50% - 7.50%	7.50%
WACC	10.1% - 13.5%	11.8%

WACC

KSOLVES.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.4	0.62

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	13.70%

Tax rate	25.00%	25.10%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.50%	7.50%

After-tax WACC	10.1%	13.5%


Selected WACC	11.8%

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 (11.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.4) + 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.