FLEXITUFF.NS WACC - Weighted Average Cost of Capital

The WACC of Flexituff Ventures International Ltd (FLEXITUFF.NS) is 10.7%.

The Cost of Equity of Flexituff Ventures International Ltd (FLEXITUFF.NS) is 123.95%.

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

	Range	Selected
Cost of equity	87.10% - 160.80%	123.95%
Tax rate	25.50% - 27.30%	26.40%
Cost of debt	9.10% - 9.80%	9.45%
WACC	9.3% - 12.1%	10.7%

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	9.66	16.42

Additional risk adjustments	0.0%	0.5%
Cost of equity	87.10%	160.80%

Tax rate	25.50%	27.30%
Debt/Equity ratio	30.2	30.2
Cost of debt	9.10%	9.80%

After-tax WACC	9.3%	12.1%


Selected WACC	10.7%

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 (123.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (9.66) + 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.