503657.BO WACC - Weighted Average Cost of Capital
The WACC of Veer Energy & Infrastructure Ltd (503657.BO) is 9.8%.
| Range | Selected | |
| Cost of equity | 10.1% - 17.8% | 13.95% |
| Tax rate | 20.6% - 28.0% | 24.3% |
| Cost of debt | 7.5% - 7.5% | 7.5% |
| WACC | 8.0% - 11.6% | 9.8% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.39 | 1.07 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.1% | 17.8% |
| Tax rate | 20.6% | 28.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 7.5% | 7.5% |
| After-tax WACC | 8.0% | 11.6% |
| Selected WACC | 9.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 503657.BO | Veer Energy & Infrastructure Ltd | 1.11 | 0.84 | 0.46 |
| 1381.HK | Canvest Environmental Protection Group Company Ltd | 1.12 | 0.04 | 0.02 |
| 506520.BO | Jayshree Chemicals Ltd | 0.03 | 0.59 | 0.58 |
| 526237.BO | Morgan Ventures Ltd | 1.37 | 0.16 | 0.08 |
| 530821.BO | SSPDL Ltd | 1.92 | 0.05 | 0.02 |
| 531343.BO | India Infraspace Ltd | 1.9 | -0.19 | -0.08 |
| 531574.BO | Vas Infrastructure Ltd (cn) | 8.16 | -0.5 | -0.07 |
| 534612.BO | Advance Metering Technology Ltd | 0.3 | 1.24 | 1.01 |
| 534618.BO | Sangam Renewables Ltd | 0 | 0.72 | 0.71 |
| 539686.BO | KP ENERGY Ltd | 0.03 | 1.17 | 1.15 |
| INDOWIND.NS | Indowind Energy Ltd | 0.24 | 1.6 | 1.36 |
| Low | High | |
| Unlevered beta | 0.08 | 0.58 |
| Relevered beta | 0.09 | 1.1 |
| Adjusted relevered beta | 0.39 | 1.07 |
503657.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 503657.BO:
cost_of_equity (13.95%) = 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.