The WACC of Brady And Morris Engineering Co Ltd (505690.BO) is 12.4%.
Range | Selected | |
Cost of equity | 11.2% - 14.1% | 12.65% |
Tax rate | 23.4% - 26.8% | 25.1% |
Cost of debt | 6.0% - 7.5% | 6.75% |
WACC | 11.0% - 13.8% | 12.4% |
Category | Low | High |
Long-term bond rate | 6.9% | 7.4% |
Equity market risk premium | 8.3% | 9.3% |
Adjusted beta | 0.52 | 0.67 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 11.2% | 14.1% |
Tax rate | 23.4% | 26.8% |
Debt/Equity ratio | 0.03 | 0.03 |
Cost of debt | 6.0% | 7.5% |
After-tax WACC | 11.0% | 13.8% |
Selected WACC | 12.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
505690.BO | Brady And Morris Engineering Co Ltd | 0.03 | -0.5 | -0.49 |
505827.BO | SNL Bearings Ltd | 0 | 1.11 | 1.11 |
522650.BO | Bemco Hydraulics Ltd | 0.04 | 0.97 | 0.95 |
526073.BO | Galaxy Bearings Ltd | 0.1 | 0.33 | 0.31 |
531888.BO | Rexnord Electronics and Controls Ltd | 0.26 | 0.69 | 0.58 |
533170.BO | Tamboli Capital Ltd | 0.04 | 1.08 | 1.05 |
539227.BO | LOYAL EQUIPMENTS Ltd | 0.03 | 0.11 | 0.11 |
MARSHALL.NS | Marshall Machines Ltd | 1.47 | 0.4 | 0.19 |
NIBL.NS | NRB Industrial Bearings Ltd | 1.82 | 0.56 | 0.24 |
SOMICONVEY.NS | Somi Conveyor Beltings Ltd | 0.12 | 0.47 | 0.43 |
Low | High | |
Unlevered beta | 0.28 | 0.49 |
Relevered beta | 0.28 | 0.51 |
Adjusted relevered beta | 0.52 | 0.67 |
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 505690.BO:
cost_of_equity (12.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.52) + 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.