MUKANDENGG.NS WACC - Weighted Average Cost of Capital

The WACC of Mukand Engineers Ltd (MUKANDENGG.NS) is 9.8%.

The Cost of Equity of Mukand Engineers Ltd (MUKANDENGG.NS) is 17.40%.

The Cost of Debt of Mukand Engineers Ltd (MUKANDENGG.NS) is 7.70%.

	Range	Selected
Cost of equity	14.80% - 20.00%	17.40%
Tax rate	0.80% - 1.60%	1.20%
Cost of debt	7.00% - 8.40%	7.70%
WACC	8.7% - 10.8%	9.8%

WACC

MUKANDENGG.NS WACC calculation

Category	Low	High

Long-term bond rate	7.5%	8.0%
Equity market risk premium	6.9%	7.9%
Adjusted beta	1.05	1.45

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.80%	20.00%

Tax rate	0.80%	1.60%
Debt/Equity ratio	3.55	3.55
Cost of debt	7.00%	8.40%

After-tax WACC	8.7%	10.8%


Selected WACC	9.8%

MUKANDENGG.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 MUKANDENGG.NS:

cost_of_equity (17.40%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (1.05) + 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.