KSOLVES.NS WACC - Weighted Average Cost of Capital

The WACC of Ksolves India Ltd (KSOLVES.NS) is 12.3%.

The Cost of Equity of Ksolves India Ltd (KSOLVES.NS) is 12.30%.

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

	Range	Selected
Cost of equity	11.00% - 13.60%	12.30%
Tax rate	25.00% - 25.10%	25.05%
Cost of debt	7.50% - 7.50%	7.50%
WACC	11.0% - 13.5%	12.3%

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	0.5	0.62

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.00%	13.60%

Tax rate	25.00%	25.10%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.50%	7.50%

After-tax WACC	11.0%	13.5%


Selected WACC	12.3%

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 (12.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.5) + 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.