500159.BO WACC - Weighted Average Cost of Capital
The WACC of Metroglobal Ltd (500159.BO) is 14.3%.
| Range | Selected | |
| Cost of equity | 13.1% - 16.3% | 14.7% |
| Tax rate | 22.7% - 24.4% | 23.55% |
| Cost of debt | 7.5% - 9.7% | 8.6% |
| WACC | 12.8% - 15.9% | 14.3% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.75 | 0.91 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.1% | 16.3% |
| Tax rate | 22.7% | 24.4% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 7.5% | 9.7% |
| After-tax WACC | 12.8% | 15.9% |
| Selected WACC | 14.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 500159.BO | Metroglobal Ltd | 0.05 | 0.77 | 0.74 |
| 511076.BO | Sat Industries Ltd | 0.19 | 0.67 | 0.59 |
| 511736.BO | Ushdev International Ltd | 71.81 | 0.79 | 0.01 |
| 526931.BO | Hariyana Ship Breakers Ltd | 0.21 | 1.49 | 1.28 |
| 537254.BO | RCI Industries & Technologies Ltd | 30.68 | 1.69 | 0.07 |
| 540923.BO | Ashoka Metcast Ltd | 0.37 | 0.48 | 0.38 |
| 541152.BO | Advitiya Trade India Ltd | 0.01 | 0.97 | 0.96 |
| 542012.BO | A-1 Acid Ltd | 0.03 | 0.59 | 0.58 |
| SIL.NS | Standard Industries Ltd | 0.1 | 1.47 | 1.37 |
| VINYLINDIA.NS | Vinyl Chemicals India Ltd | 0 | 1.53 | 1.53 |
| Low | High | |
| Unlevered beta | 0.58 | 0.83 |
| Relevered beta | 0.63 | 0.87 |
| Adjusted relevered beta | 0.75 | 0.91 |
500159.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 500159.BO:
cost_of_equity (14.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.75) + 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.