MUKANDLTD.NS WACC - Weighted Average Cost of Capital

The WACC of Mukand Ltd (MUKANDLTD.NS) is 14.2%.

The Cost of Equity of Mukand Ltd (MUKANDLTD.NS) is 19.35%.

The Cost of Debt of Mukand Ltd (MUKANDLTD.NS) is 9.85%.

	Range	Selected
Cost of equity	17.20% - 21.50%	19.35%
Tax rate	18.10% - 24.10%	21.10%
Cost of debt	7.60% - 12.10%	9.85%
WACC	12.3% - 16.0%	14.2%

WACC

MUKANDLTD.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.24	1.46

Additional risk adjustments	0.0%	0.5%
Cost of equity	17.20%	21.50%

Tax rate	18.10%	24.10%
Debt/Equity ratio	0.8	0.8
Cost of debt	7.60%	12.10%

After-tax WACC	12.3%	16.0%


Selected WACC	14.2%

MUKANDLTD.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 MUKANDLTD.NS:

cost_of_equity (19.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.24) + 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.