NKIND.NS WACC - Weighted Average Cost of Capital

The WACC of N K Industries Ltd (NKIND.NS) is 12.2%.

The Cost of Equity of N K Industries Ltd (NKIND.NS) is 12.35%.

The Cost of Debt of N K Industries Ltd (NKIND.NS) is 7.00%.

	Range	Selected
Cost of equity	10.40% - 14.30%	12.35%
Tax rate	13.90% - 21.20%	17.55%
Cost of debt	7.00% - 7.00%	7.00%
WACC	10.3% - 14.1%	12.2%

WACC

NKIND.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.42	0.69

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	14.30%

Tax rate	13.90%	21.20%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.00%	7.00%

After-tax WACC	10.3%	14.1%


Selected WACC	12.2%

NKIND.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 NKIND.NS:

cost_of_equity (12.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.42) + 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.