WSTCSTPAPR.NS WACC - Weighted Average Cost of Capital

The WACC of West Coast Paper Mills Ltd (WSTCSTPAPR.NS) is 15.5%.

The Cost of Equity of West Coast Paper Mills Ltd (WSTCSTPAPR.NS) is 16.50%.

The Cost of Debt of West Coast Paper Mills Ltd (WSTCSTPAPR.NS) is 7.85%.

	Range	Selected
Cost of equity	14.70% - 18.30%	16.50%
Tax rate	22.30% - 25.80%	24.05%
Cost of debt	7.50% - 8.20%	7.85%
WACC	13.9% - 17.2%	15.5%

WACC

WSTCSTPAPR.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.94	1.12

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.70%	18.30%

Tax rate	22.30%	25.80%
Debt/Equity ratio	0.1	0.1
Cost of debt	7.50%	8.20%

After-tax WACC	13.9%	17.2%


Selected WACC	15.5%

WSTCSTPAPR.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 WSTCSTPAPR.NS:

cost_of_equity (16.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.94) + 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.