POLYPLEX.NS WACC - Weighted Average Cost of Capital

The WACC of Polyplex Corp Ltd (POLYPLEX.NS) is 16.4%.

The Cost of Equity of Polyplex Corp Ltd (POLYPLEX.NS) is 18.55%.

The Cost of Debt of Polyplex Corp Ltd (POLYPLEX.NS) is 5.80%.

	Range	Selected
Cost of equity	17.20% - 19.90%	18.55%
Tax rate	13.60% - 14.60%	14.10%
Cost of debt	4.00% - 7.60%	5.80%
WACC	15.0% - 17.8%	16.4%

WACC

POLYPLEX.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	1.29

Additional risk adjustments	0.0%	0.5%
Cost of equity	17.20%	19.90%

Tax rate	13.60%	14.60%
Debt/Equity ratio	0.19	0.19
Cost of debt	4.00%	7.60%

After-tax WACC	15.0%	17.8%


Selected WACC	16.4%

POLYPLEX.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 POLYPLEX.NS:

cost_of_equity (18.55%) = 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.