MOLDTKPAC.NS WACC - Weighted Average Cost of Capital

The WACC of Mold-Tek Packaging Ltd (MOLDTKPAC.NS) is 15.1%.

The Cost of Equity of Mold-Tek Packaging Ltd (MOLDTKPAC.NS) is 15.70%.

The Cost of Debt of Mold-Tek Packaging Ltd (MOLDTKPAC.NS) is 8.95%.

	Range	Selected
Cost of equity	14.40% - 17.00%	15.70%
Tax rate	23.90% - 24.90%	24.40%
Cost of debt	7.80% - 10.10%	8.95%
WACC	13.8% - 16.3%	15.1%

WACC

MOLDTKPAC.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.91	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.40%	17.00%

Tax rate	23.90%	24.90%
Debt/Equity ratio	0.07	0.07
Cost of debt	7.80%	10.10%

After-tax WACC	13.8%	16.3%


Selected WACC	15.1%

MOLDTKPAC.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 MOLDTKPAC.NS:

cost_of_equity (15.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.91) + 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.