RPPL.NS WACC - Weighted Average Cost of Capital

The WACC of Rajshree Polypack Ltd (RPPL.NS) is 11.6%.

The Cost of Equity of Rajshree Polypack Ltd (RPPL.NS) is 13.55%.

The Cost of Debt of Rajshree Polypack Ltd (RPPL.NS) is 9.45%.

	Range	Selected
Cost of equity	12.30% - 14.80%	13.55%
Tax rate	25.60% - 26.20%	25.90%
Cost of debt	8.60% - 10.30%	9.45%
WACC	10.5% - 12.6%	11.6%

WACC

RPPL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.65	0.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.30%	14.80%

Tax rate	25.60%	26.20%
Debt/Equity ratio	0.43	0.43
Cost of debt	8.60%	10.30%

After-tax WACC	10.5%	12.6%


Selected WACC	11.6%

RPPL.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 RPPL.NS:

cost_of_equity (13.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.65) + 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.