REFEX.NS WACC - Weighted Average Cost of Capital

The WACC of Refex Industries Ltd (REFEX.NS) is 12.7%.

The Cost of Equity of Refex Industries Ltd (REFEX.NS) is 12.60%.

The Cost of Debt of Refex Industries Ltd (REFEX.NS) is 21.05%.

	Range	Selected
Cost of equity	10.30% - 14.90%	12.60%
Tax rate	25.70% - 27.20%	26.45%
Cost of debt	7.60% - 34.50%	21.05%
WACC	10.1% - 15.3%	12.7%

WACC

REFEX.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.41	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.30%	14.90%

Tax rate	25.70%	27.20%
Debt/Equity ratio	0.04	0.04
Cost of debt	7.60%	34.50%

After-tax WACC	10.1%	15.3%


Selected WACC	12.7%

REFEX.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 REFEX.NS:

cost_of_equity (12.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.41) + 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.