505872.BO WACC - Weighted Average Cost of Capital
The WACC of WPIL Ltd (505872.BO) is 15.0%.
| Range | Selected | |
| Cost of equity | 13.6% - 17.5% | 15.55% |
| Tax rate | 27.9% - 28.3% | 28.1% |
| Cost of debt | 7.6% - 7.7% | 7.65% |
| WACC | 13.2% - 16.9% | 15.0% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.81 | 1.03 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.6% | 17.5% |
| Tax rate | 27.9% | 28.3% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 7.6% | 7.7% |
| After-tax WACC | 13.2% | 16.9% |
| Selected WACC | 15.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 505872.BO | WPIL Ltd | 0.05 | 1.21 | 1.17 |
| 500068.BO | DISA India Ltd | 0 | 0.75 | 0.75 |
| 517417.BO | Patels Airtemp (India) Ltd | 0.33 | 0.74 | 0.6 |
| ADORWELD.NS | Ador Welding Ltd | 0.03 | 0.95 | 0.93 |
| ANUP.NS | Anup Engineering Ltd | 0 | 0.53 | 0.52 |
| HONDAPOWER.NS | Honda India Power Products Ltd | 0 | 1.35 | 1.35 |
| NITINFIRE.NS | Nitin Fire Protection Industries Ltd | 11.83 | 0.92 | 0.1 |
| NRBBEARING.NS | NRB Bearings Ltd | 0.07 | 1.19 | 1.13 |
| TIIL.NS | Technocraft Industries (India) Ltd | 0.11 | 1.62 | 1.51 |
| Low | High | |
| Unlevered beta | 0.79 | 1.09 |
| Relevered beta | 0.72 | 1.04 |
| Adjusted relevered beta | 0.81 | 1.03 |
505872.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 505872.BO:
cost_of_equity (15.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.81) + 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.