KOKUYOCMLN.NS WACC - Weighted Average Cost of Capital

The WACC of Kokuyo Camlin Ltd (KOKUYOCMLN.NS) is 11.6%.

The Cost of Equity of Kokuyo Camlin Ltd (KOKUYOCMLN.NS) is 12.05%.

The Cost of Debt of Kokuyo Camlin Ltd (KOKUYOCMLN.NS) is 6.70%.

	Range	Selected
Cost of equity	10.60% - 13.50%	12.05%
Tax rate	27.70% - 29.40%	28.55%
Cost of debt	5.80% - 7.60%	6.70%
WACC	10.2% - 13.1%	11.6%

WACC

KOKUYOCMLN.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.44	0.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	13.50%

Tax rate	27.70%	29.40%
Debt/Equity ratio	0.06	0.06
Cost of debt	5.80%	7.60%

After-tax WACC	10.2%	13.1%


Selected WACC	11.6%

KOKUYOCMLN.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 KOKUYOCMLN.NS:

cost_of_equity (12.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.44) + 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.