RUCHIRA.NS WACC - Weighted Average Cost of Capital

The WACC of Ruchira Papers Ltd (RUCHIRA.NS) is 12.6%.

The Cost of Equity of Ruchira Papers Ltd (RUCHIRA.NS) is 16.65%.

The Cost of Debt of Ruchira Papers Ltd (RUCHIRA.NS) is 8.15%.

	Range	Selected
Cost of equity	14.90% - 18.40%	16.65%
Tax rate	25.50% - 25.60%	25.55%
Cost of debt	7.90% - 8.40%	8.15%
WACC	11.4% - 13.8%	12.6%

WACC

RUCHIRA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.96	1.13

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.90%	18.40%

Tax rate	25.50%	25.60%
Debt/Equity ratio	0.62	0.62
Cost of debt	7.90%	8.40%

After-tax WACC	11.4%	13.8%


Selected WACC	12.6%

RUCHIRA.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 RUCHIRA.NS:

cost_of_equity (16.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.96) + 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.