MOLDTECH.NS
Mold-Tek Technologies Ltd
Price:  
163.23 
INR
Volume:  
55,059.00
India | Construction & Engineering
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MOLDTECH.NS WACC - Weighted Average Cost of Capital

The WACC of Mold-Tek Technologies Ltd (MOLDTECH.NS) is 10.9%.

The Cost of Equity of Mold-Tek Technologies Ltd (MOLDTECH.NS) is 11.10%.
The Cost of Debt of Mold-Tek Technologies Ltd (MOLDTECH.NS) is 5.00%.

Range Selected
Cost of equity 10.00% - 12.20% 11.10%
Tax rate 25.20% - 25.70% 25.45%
Cost of debt 5.00% - 5.00% 5.00%
WACC 9.8% - 12.0% 10.9%
WACC

MOLDTECH.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.37 0.46
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.00% 12.20%
Tax rate 25.20% 25.70%
Debt/Equity ratio 0.02 0.02
Cost of debt 5.00% 5.00%
After-tax WACC 9.8% 12.0%
Selected WACC 10.9%

MOLDTECH.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 MOLDTECH.NS:

cost_of_equity (11.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.37) + 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.