FLEXITUFF.NS WACC - Weighted Average Cost of Capital

The WACC of Flexituff Ventures International Ltd (FLEXITUFF.NS) is 11.0%.

The Cost of Equity of Flexituff Ventures International Ltd (FLEXITUFF.NS) is 120.65%.

The Cost of Debt of Flexituff Ventures International Ltd (FLEXITUFF.NS) is 9.45%.

	Range	Selected
Cost of equity	99.50% - 141.80%	120.65%
Tax rate	25.50% - 27.30%	26.40%
Cost of debt	9.10% - 9.80%	9.45%
WACC	10.1% - 12.0%	11.0%

WACC

FLEXITUFF.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	11.15	14.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	99.50%	141.80%

Tax rate	25.50%	27.30%
Debt/Equity ratio	26.83	26.83
Cost of debt	9.10%	9.80%

After-tax WACC	10.1%	12.0%


Selected WACC	11.0%

FLEXITUFF.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 FLEXITUFF.NS:

cost_of_equity (120.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (11.15) + 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.