MUKTAARTS.NS WACC - Weighted Average Cost of Capital

The WACC of Mukta Arts Ltd (MUKTAARTS.NS) is 12.3%.

The Cost of Equity of Mukta Arts Ltd (MUKTAARTS.NS) is 13.70%.

The Cost of Debt of Mukta Arts Ltd (MUKTAARTS.NS) is 11.20%.

	Range	Selected
Cost of equity	12.40% - 15.00%	13.70%
Tax rate	7.60% - 8.40%	8.00%
Cost of debt	7.00% - 15.40%	11.20%
WACC	10.0% - 14.6%	12.3%

WACC

MUKTAARTS.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.66	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.40%	15.00%

Tax rate	7.60%	8.40%
Debt/Equity ratio	0.69	0.69
Cost of debt	7.00%	15.40%

After-tax WACC	10.0%	14.6%


Selected WACC	12.3%

MUKTAARTS.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 MUKTAARTS.NS:

cost_of_equity (13.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.66) + 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.