KUANTUM.NS
Kuantum Papers Ltd
Price:  
104.00 
INR
Volume:  
28,728.00
India | Paper & Forest Products
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KUANTUM.NS WACC - Weighted Average Cost of Capital

The WACC of Kuantum Papers Ltd (KUANTUM.NS) is 12.9%.

The Cost of Equity of Kuantum Papers Ltd (KUANTUM.NS) is 17.30%.
The Cost of Debt of Kuantum Papers Ltd (KUANTUM.NS) is 8.20%.

Range Selected
Cost of equity 15.20% - 19.40% 17.30%
Tax rate 30.10% - 43.80% 36.95%
Cost of debt 8.10% - 8.30% 8.20%
WACC 11.7% - 14.1% 12.9%
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 1.24
Additional risk adjustments 0.0% 0.5%
Cost of equity 15.20% 19.40%
Tax rate 30.10% 43.80%
Debt/Equity ratio 0.56 0.56
Cost of debt 8.10% 8.30%
After-tax WACC 11.7% 14.1%
Selected WACC 12.9%

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 (17.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1) + 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.