REPL.NS WACC - Weighted Average Cost of Capital

The WACC of Rudrabhishek Enterprises Ltd (REPL.NS) is 11.3%.

The Cost of Equity of Rudrabhishek Enterprises Ltd (REPL.NS) is 11.45%.

The Cost of Debt of Rudrabhishek Enterprises Ltd (REPL.NS) is 9.35%.

	Range	Selected
Cost of equity	10.00% - 12.90%	11.45%
Tax rate	25.80% - 26.30%	26.05%
Cost of debt	7.60% - 11.10%	9.35%
WACC	9.9% - 12.8%	11.3%

WACC

REPL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.38	0.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.00%	12.90%

Tax rate	25.80%	26.30%
Debt/Equity ratio	0.03	0.03
Cost of debt	7.60%	11.10%

After-tax WACC	9.9%	12.8%


Selected WACC	11.3%

REPL.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 REPL.NS:

cost_of_equity (11.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.38) + 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.