KOHINOOR.NS WACC - Weighted Average Cost of Capital

The WACC of Kohinoor Foods Ltd (KOHINOOR.NS) is 15.1%.

The Cost of Equity of Kohinoor Foods Ltd (KOHINOOR.NS) is 24.60%.

The Cost of Debt of Kohinoor Foods Ltd (KOHINOOR.NS) is 13.95%.

	Range	Selected
Cost of equity	22.40% - 26.80%	24.60%
Tax rate	9.50% - 14.70%	12.10%
Cost of debt	4.00% - 23.90%	13.95%
WACC	8.2% - 21.9%	15.1%

WACC

KOHINOOR.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.87	2.04

Additional risk adjustments	0.0%	0.5%
Cost of equity	22.40%	26.80%

Tax rate	9.50%	14.70%
Debt/Equity ratio	3.06	3.06
Cost of debt	4.00%	23.90%

After-tax WACC	8.2%	21.9%


Selected WACC	15.1%

KOHINOOR.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 KOHINOOR.NS:

cost_of_equity (24.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.87) + 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.