KUANTUM.NS WACC - Weighted Average Cost of Capital

The WACC of Kuantum Papers Ltd (KUANTUM.NS) is 13.4%.

The Cost of Equity of Kuantum Papers Ltd (KUANTUM.NS) is 17.40%.

The Cost of Debt of Kuantum Papers Ltd (KUANTUM.NS) is 8.80%.

	Range	Selected
Cost of equity	15.70% - 19.10%	17.40%
Tax rate	30.10% - 43.80%	36.95%
Cost of debt	8.10% - 9.50%	8.80%
WACC	12.3% - 14.4%	13.4%

WACC

KUANTUM.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.07	1.2

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.70%	19.10%

Tax rate	30.10%	43.80%
Debt/Equity ratio	0.52	0.52
Cost of debt	8.10%	9.50%

After-tax WACC	12.3%	14.4%


Selected WACC	13.4%

KUANTUM.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 KUANTUM.NS:

cost_of_equity (17.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.07) + 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.