509438.BO
Benares Hotels Ltd
Price:  
9,930.00 
INR
Volume:  
149.00
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 13.8%.

The Cost of Equity of Benares Hotels Ltd (509438.BO) is 13.80%.
The Cost of Debt of Benares Hotels Ltd (509438.BO) is 5.00%.

Range Selected
Cost of equity 12.30% - 15.30% 13.80%
Tax rate 25.20% - 25.40% 25.30%
Cost of debt 5.00% - 5.00% 5.00%
WACC 12.3% - 15.2% 13.8%
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 0.66 0.79
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.30% 15.30%
Tax rate 25.20% 25.40%
Debt/Equity ratio 0 0
Cost of debt 5.00% 5.00%
After-tax WACC 12.3% 15.2%
Selected WACC 13.8%

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 (13.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.66) + 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.