RUPA.NS
Rupa & Company Ltd
Price:  
218.00 
INR
Volume:  
182,070.00
India | Textiles, Apparel & Luxury Goods
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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.