506530.BO WACC - Weighted Average Cost of Capital
The WACC of Kemp and Company Ltd (506530.BO) is 8.7%.
| Range | Selected | |
| Cost of equity | 11.2% - 14.5% | 12.85% |
| Tax rate | 9.3% - 11.5% | 10.4% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.9% - 9.5% | 8.7% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.52 | 0.71 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.2% | 14.5% |
| Tax rate | 9.3% | 11.5% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.9% | 9.5% |
| Selected WACC | 8.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 506530.BO | Kemp and Company Ltd | 0.82 | 0.35 | 0.2 |
| 2911.TW | Les Enphants Co Ltd | 5.49 | 0.32 | 0.05 |
| 518017.BO | Bheema Cements Ltd | 3.79 | 0.96 | 0.22 |
| 524488.BO | SVC Industries Ltd | 2.95 | -0.51 | -0.14 |
| 533.HK | Goldlion Holdings Ltd | 0.03 | -0.09 | -0.09 |
| 540125.BO | Radhika Jeweltech Ltd | 0.06 | 0.28 | 0.27 |
| 540615.BO | 7NR Retail Ltd | 0.35 | 0.63 | 0.48 |
| BCONCEPTS.NS | Brand Concepts Ltd | 0.17 | 0.85 | 0.74 |
| FLFL.NS | Future Lifestyle Fashions Ltd | 63.35 | -0.74 | -0.01 |
| TGL.KL | Teo Guan Lee Corporation Bhd | 0.14 | 0.61 | 0.54 |
| THOMASCOTT.NS | Thomas Scott (India) Ltd | 0.01 | 0.34 | 0.34 |
| Low | High | |
| Unlevered beta | 0.2 | 0.27 |
| Relevered beta | 0.28 | 0.57 |
| Adjusted relevered beta | 0.52 | 0.71 |
506530.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 506530.BO:
cost_of_equity (12.85%) = 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.