507690.BO WACC - Weighted Average Cost of Capital
The WACC of Orient Beverages Ltd (507690.BO) is 11.3%.
| Range | Selected | |
| Cost of equity | 13.8% - 16.7% | 15.25% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 10.5% - 12.2% | 11.35% |
| WACC | 10.3% - 12.2% | 11.3% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.83 | 0.95 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.8% | 16.7% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 1.21 | 1.21 |
| Cost of debt | 10.5% | 12.2% |
| After-tax WACC | 10.3% | 12.2% |
| Selected WACC | 11.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 507690.BO | Orient Beverages Ltd | 1.21 | 0.9 | 0.49 |
| 1213.TW | Oceanic Beverages Co Inc | 0.6 | -0.05 | -0.03 |
| 507155.BO | Jagatjit Industries Ltd | 0.3 | 0.87 | 0.72 |
| 526471.BO | Winsome Breweries Ltd | 0.09 | 1.09 | 1.03 |
| 532320.BO | Vaarad Ventures Ltd | 0.01 | 0.23 | 0.22 |
| ERG.AX | Eneco Refresh Ltd | 1.28 | -1.26 | -0.66 |
| PIONDIST.NS | Pioneer Distilleries Ltd | 1.97 | 1.13 | 0.47 |
| RKDL.NS | Ravi Kumar Distilleries Ltd | 0.56 | 0.73 | 0.52 |
| SCD.VN | Chuong Duong Beverages JSC | 6.38 | 1.63 | 0.3 |
| VBL.NS | Varun Beverages Ltd | 0.02 | 1.54 | 1.52 |
| Low | High | |
| Unlevered beta | 0.4 | 0.5 |
| Relevered beta | 0.75 | 0.93 |
| Adjusted relevered beta | 0.83 | 0.95 |
507690.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 507690.BO:
cost_of_equity (15.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.83) + 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.