MASFIN.NS WACC - Weighted Average Cost of Capital

The WACC of MAS Financial Services Ltd (MASFIN.NS) is 14.3%.

The Cost of Equity of MAS Financial Services Ltd (MASFIN.NS) is 14.60%.

The Cost of Debt of MAS Financial Services Ltd (MASFIN.NS) is 18.80%.

	Range	Selected
Cost of equity	12.90% - 16.30%	14.60%
Tax rate	25.30% - 25.50%	25.40%
Cost of debt	13.70% - 23.90%	18.80%
WACC	11.4% - 17.2%	14.3%

WACC

MASFIN.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.73	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.90%	16.30%

Tax rate	25.30%	25.50%
Debt/Equity ratio	1.32	1.32
Cost of debt	13.70%	23.90%

After-tax WACC	11.4%	17.2%


Selected WACC	14.3%

MASFIN.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 MASFIN.NS:

cost_of_equity (14.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.73) + 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.