509438.BO
Benares Hotels Ltd
Price:  
9,730.60 
INR
Volume:  
380.00
India | Hotels, Restaurants & Leisure
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509438.BO WACC - Weighted Average Cost of Capital

The WACC of Benares Hotels Ltd (509438.BO) is 12.4%.

The Cost of Equity of Benares Hotels Ltd (509438.BO) is 12.40%.
The Cost of Debt of Benares Hotels Ltd (509438.BO) is 5.00%.

Range Selected
Cost of equity 10.80% - 14.00% 12.40%
Tax rate 25.00% - 25.10% 25.05%
Cost of debt 5.00% - 5.00% 5.00%
WACC 10.7% - 14.0% 12.4%
WACC

509438.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.47 0.66
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.80% 14.00%
Tax rate 25.00% 25.10%
Debt/Equity ratio 0 0
Cost of debt 5.00% 5.00%
After-tax WACC 10.7% 14.0%
Selected WACC 12.4%

509438.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 509438.BO:

cost_of_equity (12.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.47) + 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.