MANAKSTEEL.NS WACC - Weighted Average Cost of Capital

The WACC of Manaksia Steels Ltd (MANAKSTEEL.NS) is 11.9%.

The Cost of Equity of Manaksia Steels Ltd (MANAKSTEEL.NS) is 12.95%.

The Cost of Debt of Manaksia Steels Ltd (MANAKSTEEL.NS) is 12.65%.

	Range	Selected
Cost of equity	10.90% - 15.00%	12.95%
Tax rate	24.10% - 26.10%	25.10%
Cost of debt	10.00% - 15.30%	12.65%
WACC	9.9% - 13.9%	11.9%

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	0.48	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	15.00%

Tax rate	24.10%	26.10%
Debt/Equity ratio	0.43	0.43
Cost of debt	10.00%	15.30%

After-tax WACC	9.9%	13.9%


Selected WACC	11.9%

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 (12.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.48) + 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.