509162.BO WACC - Weighted Average Cost of Capital
The WACC of Indag Rubber Ltd (509162.BO) is 15.0%.
| Range | Selected | |
| Cost of equity | 13.6% - 17.0% | 15.3% |
| Tax rate | 22.2% - 23.4% | 22.8% |
| Cost of debt | 7.5% - 7.5% | 7.5% |
| WACC | 13.4% - 16.7% | 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 | 0.98 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.6% | 17.0% |
| Tax rate | 22.2% | 23.4% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 7.5% | 7.5% |
| After-tax WACC | 13.4% | 16.7% |
| Selected WACC | 15.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 509162.BO | Indag Rubber Ltd | 0.03 | 0.84 | 0.82 |
| 523550.BO | Krypton Industries Ltd | 0.33 | 1.4 | 1.12 |
| 531346.BO | Eastern Treads Ltd | 1.86 | 0.86 | 0.35 |
| 542013.BO | Dolfin Rubbers Ltd | 0.09 | 0.42 | 0.4 |
| BIRLATYRE.NS | Birla Tyres Ltd | 15.27 | -1.1 | -0.09 |
| CEATLTD.NS | CEAT Ltd | 0.12 | 1.12 | 1.03 |
| GOODYEAR.NS | Goodyear India Ltd | 0 | 0.92 | 0.92 |
| GRPLTD.NS | GRP Ltd | 0.1 | 0.56 | 0.52 |
| PTL.NS | PTL Enterprises Ltd | 0.03 | 1.03 | 1 |
| TVSSRICHAK.NS | TVS Srichakra Ltd | 0.36 | 1.39 | 1.09 |
| Low | High | |
| Unlevered beta | 0.7 | 0.95 |
| Relevered beta | 0.72 | 0.97 |
| Adjusted relevered beta | 0.81 | 0.98 |
509162.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 509162.BO:
cost_of_equity (15.30%) = 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.