The WACC of Graviss Hospitality Ltd (509546.BO) is 12.3%.
Range | Selected | |
Cost of equity | 10.7% - 14.4% | 12.55% |
Tax rate | 20.2% - 22.3% | 21.25% |
Cost of debt | 4.8% - 7.8% | 6.3% |
WACC | 10.5% - 14.1% | 12.3% |
Category | Low | High |
Long-term bond rate | 6.9% | 7.4% |
Equity market risk premium | 8.3% | 9.3% |
Adjusted beta | 0.47 | 0.7 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 10.7% | 14.4% |
Tax rate | 20.2% | 22.3% |
Debt/Equity ratio | 0.04 | 0.04 |
Cost of debt | 4.8% | 7.8% |
After-tax WACC | 10.5% | 14.1% |
Selected WACC | 12.3% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
509546.BO | Graviss Hospitality Ltd | 0.04 | 0.22 | 0.21 |
512634.BO | Savera Industries Ltd | 0.03 | 0.78 | 0.76 |
523023.BO | Sinclairs Hotels Ltd | 0.02 | 1.05 | 1.03 |
526640.BO | Royale Manor Hotels and Industries Ltd | 0.06 | 0.7 | 0.67 |
526755.BO | Velan Hotels Ltd | 3.33 | 0.54 | 0.15 |
526761.BO | Howard Hotels Ltd | 0.2 | 0.2 | 0.18 |
532145.BO | H S India Ltd | 0.7 | 0.7 | 0.45 |
BLUECOAST.NS | Blue Coast Hotels Ltd | 0.34 | -0.43 | -0.33 |
TGBHOTELS.NS | TGB Banquets and Hotels Ltd | 0.46 | 1.05 | 0.77 |
VICEROY.NS | Viceroy Hotels Ltd | 0.36 | -0.21 | -0.16 |
Low | High | |
Unlevered beta | 0.2 | 0.54 |
Relevered beta | 0.21 | 0.55 |
Adjusted relevered beta | 0.47 | 0.7 |
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.