RUPA.NS WACC - Weighted Average Cost of Capital

The WACC of Rupa & Company Ltd (RUPA.NS) is 14.6%.

The Cost of Equity of Rupa & Company Ltd (RUPA.NS) is 15.85%.

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

	Range	Selected
Cost of equity	14.30% - 17.40%	15.85%
Tax rate	24.70% - 26.20%	25.45%
Cost of debt	7.30% - 7.90%	7.60%
WACC	13.2% - 16.0%	14.6%

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	0.89	1.02

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.30%	17.40%

Tax rate	24.70%	26.20%
Debt/Equity ratio	0.14	0.14
Cost of debt	7.30%	7.90%

After-tax WACC	13.2%	16.0%


Selected WACC	14.6%

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 (15.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.89) + 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.