503127.BO WACC - Weighted Average Cost of Capital
The WACC of Raja Bahadur International Ltd (503127.BO) is 10.7%.
| Range | Selected | |
| Cost of equity | 10.1% - 12.3% | 11.2% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 11.1% - 18.6% | 14.85% |
| WACC | 8.6% - 12.8% | 10.7% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.39 | 0.48 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.1% | 12.3% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 1.85 | 1.85 |
| Cost of debt | 11.1% | 18.6% |
| After-tax WACC | 8.6% | 12.8% |
| Selected WACC | 10.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 503127.BO | Raja Bahadur International Ltd | 1.85 | -1.06 | -0.46 |
| 511441.BO | Gujarat Credit Corporation Ltd | 0.26 | -0.22 | -0.19 |
| 511714.BO | Nimbus Projects Ltd | 0.02 | 0.09 | 0.09 |
| 526500.BO | Sterling Greenwoods Ltd | 0.79 | 0.2 | 0.13 |
| 530821.BO | SSPDL Ltd | 1.92 | 0.05 | 0.02 |
| 531080.BO | Shri Krishna Devcon Ltd | 0.35 | 0.13 | 0.11 |
| 531273.BO | Radhe Developers (India) Ltd | 0.29 | 0.49 | 0.41 |
| 531574.BO | Vas Infrastructure Ltd (cn) | 8.16 | -0.5 | -0.07 |
| 531802.BO | Prerna Infrabuild Ltd | 0.29 | 0.49 | 0.41 |
| 531909.BO | Swagruha Infrastructure Ltd | 0 | 0.05 | 0.05 |
| Low | High | |
| Unlevered beta | 0.04 | 0.1 |
| Relevered beta | 0.09 | 0.22 |
| Adjusted relevered beta | 0.39 | 0.48 |
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.