MKPL.NS WACC - Weighted Average Cost of Capital

The WACC of M K Proteins Ltd (MKPL.NS) is 12.2%.

The Cost of Equity of M K Proteins Ltd (MKPL.NS) is 14.05%.

The Cost of Debt of M K Proteins Ltd (MKPL.NS) is 5.55%.

	Range	Selected
Cost of equity	12.00% - 16.10%	14.05%
Tax rate	27.20% - 27.30%	27.25%
Cost of debt	4.10% - 7.00%	5.55%
WACC	10.4% - 14.1%	12.2%

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	0.61	0.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.00%	16.10%

Tax rate	27.20%	27.30%
Debt/Equity ratio	0.22	0.22
Cost of debt	4.10%	7.00%

After-tax WACC	10.4%	14.1%


Selected WACC	12.2%

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 (14.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.61) + 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.