MANAKALUCO.NS WACC - Weighted Average Cost of Capital

The WACC of Manaksia Aluminium Co Ltd (MANAKALUCO.NS) is 15.4%.

The Cost of Equity of Manaksia Aluminium Co Ltd (MANAKALUCO.NS) is 19.65%.

The Cost of Debt of Manaksia Aluminium Co Ltd (MANAKALUCO.NS) is 14.85%.

	Range	Selected
Cost of equity	16.00% - 23.30%	19.65%
Tax rate	21.70% - 23.70%	22.70%
Cost of debt	14.30% - 15.40%	14.85%
WACC	13.5% - 17.2%	15.4%

WACC

MANAKALUCO.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.1	1.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.00%	23.30%

Tax rate	21.70%	23.70%
Debt/Equity ratio	1.1	1.1
Cost of debt	14.30%	15.40%

After-tax WACC	13.5%	17.2%


Selected WACC	15.4%

MANAKALUCO.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 MANAKALUCO.NS:

cost_of_equity (19.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.1) + 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.