UFLEX.NS WACC - Weighted Average Cost of Capital

The WACC of Uflex Ltd (UFLEX.NS) is 12.8%.

The Cost of Equity of Uflex Ltd (UFLEX.NS) is 24.30%.

The Cost of Debt of Uflex Ltd (UFLEX.NS) is 12.00%.

	Range	Selected
Cost of equity	20.40% - 28.20%	24.30%
Tax rate	26.00% - 26.40%	26.20%
Cost of debt	8.60% - 15.40%	12.00%
WACC	10.0% - 15.7%	12.8%

WACC

UFLEX.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.63	2.18

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.40%	28.20%

Tax rate	26.00%	26.40%
Debt/Equity ratio	2.89	2.89
Cost of debt	8.60%	15.40%

After-tax WACC	10.0%	15.7%


Selected WACC	12.8%

UFLEX.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 UFLEX.NS:

cost_of_equity (24.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.63) + 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.