505358.BO WACC - Weighted Average Cost of Capital
The WACC of Integra Engineering India Ltd (505358.BO) is 12.0%.
| Range | Selected | |
| Cost of equity | 10.5% - 14.0% | 12.25% |
| Tax rate | 30.5% - 31.0% | 30.75% |
| Cost of debt | 4.0% - 7.5% | 5.75% |
| WACC | 10.3% - 13.7% | 12.0% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.44 | 0.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.5% | 14.0% |
| Tax rate | 30.5% | 31.0% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 4.0% | 7.5% |
| After-tax WACC | 10.3% | 13.7% |
| Selected WACC | 12.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 505358.BO | Integra Engineering India Ltd | 0.03 | 1.16 | 1.14 |
| 505690.BO | Brady And Morris Engineering Co Ltd | 0.03 | -0.5 | -0.49 |
| 507817.BO | Wires and Fabriks (SA) Ltd | 1.58 | 0.15 | 0.07 |
| 513709.BO | Shilp Gravures Ltd | 0.02 | 1.21 | 1.19 |
| 526073.BO | Galaxy Bearings Ltd | 0.07 | 0.33 | 0.31 |
| 531306.BO | DHP India Ltd | 0.03 | 1.05 | 1.03 |
| 539227.BO | LOYAL EQUIPMENTS Ltd | 0.05 | 0.11 | 0.11 |
| EMKAYTOOLS.NS | Emkay Taps And Cutting Tools Ltd | 0.02 | 0.19 | 0.19 |
| MACPOWER.NS | Macpower CNC Machines Ltd | 0 | 0.72 | 0.72 |
| NIBL.NS | NRB Industrial Bearings Ltd | 1.86 | 0.22 | 0.09 |
| Low | High | |
| Unlevered beta | 0.16 | 0.48 |
| Relevered beta | 0.16 | 0.49 |
| Adjusted relevered beta | 0.44 | 0.66 |
505358.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 505358.BO:
cost_of_equity (12.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.44) + 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.