MANAKSTEEL.NS
Manaksia Steels Ltd
Price:  
64.56 
INR
Volume:  
46,989.00
India | Metals & Mining
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MANAKSTEEL.NS WACC - Weighted Average Cost of Capital

The WACC of Manaksia Steels Ltd (MANAKSTEEL.NS) is 11.1%.

The Cost of Equity of Manaksia Steels Ltd (MANAKSTEEL.NS) is 11.75%.
The Cost of Debt of Manaksia Steels Ltd (MANAKSTEEL.NS) is 13.05%.

Range Selected
Cost of equity 9.80% - 13.70% 11.75%
Tax rate 24.10% - 26.10% 25.10%
Cost of debt 10.50% - 15.60% 13.05%
WACC 9.2% - 13.0% 11.1%
WACC

MANAKSTEEL.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.35 0.63
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.80% 13.70%
Tax rate 24.10% 26.10%
Debt/Equity ratio 0.5 0.5
Cost of debt 10.50% 15.60%
After-tax WACC 9.2% 13.0%
Selected WACC 11.1%

MANAKSTEEL.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 MANAKSTEEL.NS:

cost_of_equity (11.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.35) + 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.