KUANTUM.NS WACC - Weighted Average Cost of Capital

The WACC of Kuantum Papers Ltd (KUANTUM.NS) is 13.2%.

The Cost of Equity of Kuantum Papers Ltd (KUANTUM.NS) is 17.45%.

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

	Range	Selected
Cost of equity	15.50% - 19.40%	17.45%
Tax rate	30.10% - 43.80%	36.95%
Cost of debt	8.10% - 8.30%	8.20%
WACC	12.1% - 14.3%	13.2%

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	1.04	1.24

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.50%	19.40%

Tax rate	30.10%	43.80%
Debt/Equity ratio	0.52	0.52
Cost of debt	8.10%	8.30%

After-tax WACC	12.1%	14.3%


Selected WACC	13.2%

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 (17.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.04) + 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.