500213.BO WACC - Weighted Average Cost of Capital
The WACC of International Travel House Ltd (500213.BO) is 14.3%.
| Range | Selected | |
| Cost of equity | 11.4% - 17.2% | 14.3% |
| Tax rate | 15.6% - 26.1% | 20.85% |
| Cost of debt | 7.5% - 7.5% | 7.5% |
| WACC | 11.4% - 17.2% | 14.3% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.55 | 1.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.4% | 17.2% |
| Tax rate | 15.6% | 26.1% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 7.5% | 7.5% |
| After-tax WACC | 11.4% | 17.2% |
| Selected WACC | 14.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 500213.BO | International Travel House Ltd | 0 | 1.33 | 1.33 |
| 1235.HK | Travel Expert (Asia) Enterprises Ltd | 0.13 | 0.25 | 0.23 |
| 8668.HK | Ying Hai Group Holdings Company Ltd | 0.02 | -0.17 | -0.16 |
| 900929.SS | Shanghai Jinjiang International Travel Co Ltd | 0 | 1.01 | 1 |
| AHLEAST.NS | Asian Hotels East Ltd | 1.21 | 0.55 | 0.29 |
| ASIANHOTNR.NS | Asian Hotels (North) Ltd | 0.83 | 0.57 | 0.35 |
| KAMATHOTEL.NS | Kamat Hotels (India) Ltd | 0.29 | 1.23 | 1.01 |
| PDES.JK | Destinasi Tirta Nusantara Tbk PT | 0.42 | -0.03 | -0.02 |
| ROHLTD.NS | Royal Orchid Hotels Ltd | 0.15 | 1.41 | 1.27 |
| THOMASCOOK.NS | Thomas Cook (India) Ltd | 0.05 | 1.53 | 1.48 |
| Low | High | |
| Unlevered beta | 0.33 | 1.01 |
| Relevered beta | 0.33 | 1.01 |
| Adjusted relevered beta | 0.55 | 1.01 |
500213.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 500213.BO:
cost_of_equity (14.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.55) + 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.