500009.BO WACC - Weighted Average Cost of Capital
The WACC of Ambalal Sarabhai Enterprises Ltd (500009.BO) is 14.9%.
| Range | Selected | |
| Cost of equity | 14.7% - 17.2% | 15.95% |
| Tax rate | 11.6% - 13.6% | 12.6% |
| Cost of debt | 8.1% - 10.2% | 9.15% |
| WACC | 13.7% - 16.1% | 14.9% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.94 | 1.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.7% | 17.2% |
| Tax rate | 11.6% | 13.6% |
| Debt/Equity ratio | 0.15 | 0.15 |
| Cost of debt | 8.1% | 10.2% |
| After-tax WACC | 13.7% | 16.1% |
| Selected WACC | 14.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 500009.BO | Ambalal Sarabhai Enterprises Ltd | 0.15 | 0.73 | 0.65 |
| 524790.BO | Everest Organics Ltd | 0.13 | 0.89 | 0.8 |
| 530313.BO | Kimia Biosciences Ltd | 0.25 | 1.15 | 0.95 |
| 537536.BO | Denis Chem Lab Ltd | 0.01 | 0.82 | 0.82 |
| 539730.BO | Fredun Pharmaceuticals Ltd | 0.32 | 1.99 | 1.55 |
| 539997.BO | Kwality Pharmaceuticals Ltd | 0.12 | 0.94 | 0.86 |
| 540686.BO | Smruthi Organics Ltd | 0.12 | 1.74 | 1.57 |
| 540694.BO | ANG Lifesciences India Ltd | 2.03 | 1.83 | 0.66 |
| BALPHARMA.NS | Bal Pharma Ltd | 0.9 | 0.35 | 0.2 |
| JAGSNPHARM.NS | Jagson Pal Pharmaceuticals Ltd | 0.01 | 1.53 | 1.52 |
| Low | High | |
| Unlevered beta | 0.81 | 0.89 |
| Relevered beta | 0.91 | 1.01 |
| Adjusted relevered beta | 0.94 | 1.01 |
500009.BO'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 500009.BO:
cost_of_equity (15.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.94) + 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.