RUPA.NS WACC - Weighted Average Cost of Capital

The WACC of Rupa & Company Ltd (RUPA.NS) is 14.7%.

The Cost of Equity of Rupa & Company Ltd (RUPA.NS) is 17.15%.

The Cost of Debt of Rupa & Company Ltd (RUPA.NS) is 7.60%.

	Range	Selected
Cost of equity	15.80% - 18.50%	17.15%
Tax rate	24.50% - 26.00%	25.25%
Cost of debt	7.30% - 7.90%	7.60%
WACC	13.5% - 15.8%	14.7%

WACC

RUPA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.07	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.80%	18.50%

Tax rate	24.50%	26.00%
Debt/Equity ratio	0.28	0.28
Cost of debt	7.30%	7.90%

After-tax WACC	13.5%	15.8%


Selected WACC	14.7%

RUPA.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 RUPA.NS:

cost_of_equity (17.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.07) + 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.