509546.BO
Graviss Hospitality Ltd
Price:  
45.01 
INR
Volume:  
5,915
India | Hotels, Restaurants & Leisure

509546.BO WACC - Weighted Average Cost of Capital

The WACC of Graviss Hospitality Ltd (509546.BO) is 12.3%.

The Cost of Equity of Graviss Hospitality Ltd (509546.BO) is 12.55%.
The Cost of Debt of Graviss Hospitality Ltd (509546.BO) is 6.3%.

RangeSelected
Cost of equity10.7% - 14.4%12.55%
Tax rate20.2% - 22.3%21.25%
Cost of debt4.8% - 7.8%6.3%
WACC10.5% - 14.1%12.3%
WACC

509546.BO WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.470.7
Additional risk adjustments0.0%0.5%
Cost of equity10.7%14.4%
Tax rate20.2%22.3%
Debt/Equity ratio
0.040.04
Cost of debt4.8%7.8%
After-tax WACC10.5%14.1%
Selected WACC12.3%

509546.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 509546.BO:

cost_of_equity (12.55%) = 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.