MKPL.NS WACC - Weighted Average Cost of Capital

The WACC of M K Proteins Ltd (MKPL.NS) is 13.1%.

The Cost of Equity of M K Proteins Ltd (MKPL.NS) is 14.35%.

The Cost of Debt of M K Proteins Ltd (MKPL.NS) is 5.75%.

	Range	Selected
Cost of equity	11.70% - 17.00%	14.35%
Tax rate	27.30% - 27.50%	27.40%
Cost of debt	4.00% - 7.50%	5.75%
WACC	10.6% - 15.6%	13.1%

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	0.59	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.70%	17.00%

Tax rate	27.30%	27.50%
Debt/Equity ratio	0.14	0.14
Cost of debt	4.00%	7.50%

After-tax WACC	10.6%	15.6%


Selected WACC	13.1%

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 (14.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.59) + 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.