MKPL.NS WACC - Weighted Average Cost of Capital

The WACC of M K Proteins Ltd (MKPL.NS) is 11.9%.

The Cost of Equity of M K Proteins Ltd (MKPL.NS) is 13.85%.

The Cost of Debt of M K Proteins Ltd (MKPL.NS) is 6.10%.

	Range	Selected
Cost of equity	12.40% - 15.30%	13.85%
Tax rate	27.20% - 27.30%	27.25%
Cost of debt	4.10% - 8.10%	6.10%
WACC	10.4% - 13.3%	11.9%

WACC

MKPL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.66	0.8

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.40%	15.30%

Tax rate	27.20%	27.30%
Debt/Equity ratio	0.26	0.26
Cost of debt	4.10%	8.10%

After-tax WACC	10.4%	13.3%


Selected WACC	11.9%

MKPL.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 MKPL.NS:

cost_of_equity (13.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.66) + 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.