LAXMICOT.NS WACC - Weighted Average Cost of Capital

The WACC of Laxmi Cotspin Ltd (LAXMICOT.NS) is 13.5%.

The Cost of Equity of Laxmi Cotspin Ltd (LAXMICOT.NS) is 17.20%.

The Cost of Debt of Laxmi Cotspin Ltd (LAXMICOT.NS) is 17.20%.

	Range	Selected
Cost of equity	15.20% - 19.20%	17.20%
Tax rate	27.90% - 33.30%	30.60%
Cost of debt	7.50% - 26.90%	17.20%
WACC	8.6% - 18.3%	13.5%

WACC

LAXMICOT.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.01	1.21

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.20%	19.20%

Tax rate	27.90%	33.30%
Debt/Equity ratio	2.07	2.07
Cost of debt	7.50%	26.90%

After-tax WACC	8.6%	18.3%


Selected WACC	13.5%

LAXMICOT.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 LAXMICOT.NS:

cost_of_equity (17.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.01) + 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.