503127.BO
Raja Bahadur International Ltd
Price:  
4,699.65 
INR
Volume:  
25
India | Real Estate Management & Development

503127.BO WACC - Weighted Average Cost of Capital

The WACC of Raja Bahadur International Ltd (503127.BO) is 10.7%.

The Cost of Equity of Raja Bahadur International Ltd (503127.BO) is 11.2%.
The Cost of Debt of Raja Bahadur International Ltd (503127.BO) is 14.85%.

RangeSelected
Cost of equity10.1% - 12.3%11.2%
Tax rate30.0% - 30.0%30%
Cost of debt11.1% - 18.6%14.85%
WACC8.6% - 12.8%10.7%
WACC

503127.BO WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.390.48
Additional risk adjustments0.0%0.5%
Cost of equity10.1%12.3%
Tax rate30.0%30.0%
Debt/Equity ratio
1.851.85
Cost of debt11.1%18.6%
After-tax WACC8.6%12.8%
Selected WACC10.7%

503127.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 503127.BO:

cost_of_equity (11.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.39) + 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.