MANAKALUCO.NS WACC - Weighted Average Cost of Capital

The WACC of Manaksia Aluminium Co Ltd (MANAKALUCO.NS) is 15.3%.

The Cost of Equity of Manaksia Aluminium Co Ltd (MANAKALUCO.NS) is 20.90%.

The Cost of Debt of Manaksia Aluminium Co Ltd (MANAKALUCO.NS) is 14.75%.

	Range	Selected
Cost of equity	19.10% - 22.70%	20.90%
Tax rate	20.60% - 21.60%	21.10%
Cost of debt	14.10% - 15.40%	14.75%
WACC	14.3% - 16.2%	15.3%

WACC

MANAKALUCO.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.48	1.59

Additional risk adjustments	0.0%	0.5%
Cost of equity	19.10%	22.70%

Tax rate	20.60%	21.60%
Debt/Equity ratio	1.56	1.56
Cost of debt	14.10%	15.40%

After-tax WACC	14.3%	16.2%


Selected WACC	15.3%

MANAKALUCO.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 MANAKALUCO.NS:

cost_of_equity (20.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.48) + 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.