509563.BO
Garware Marine Industries Ltd
Price:  
35.58 
INR
Volume:  
11,030.00
India | Commercial Services & Supplies
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509563.BO WACC - Weighted Average Cost of Capital

The WACC of Garware Marine Industries Ltd (509563.BO) is 11.4%.

The Cost of Equity of Garware Marine Industries Ltd (509563.BO) is 11.45%.
The Cost of Debt of Garware Marine Industries Ltd (509563.BO) is 5.75%.

Range Selected
Cost of equity 10.60% - 12.30% 11.45%
Tax rate 0.50% - 1.90% 1.20%
Cost of debt 4.00% - 7.50% 5.75%
WACC 10.5% - 12.3% 11.4%
WACC

509563.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.45 0.48
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.60% 12.30%
Tax rate 0.50% 1.90%
Debt/Equity ratio 0.02 0.02
Cost of debt 4.00% 7.50%
After-tax WACC 10.5% 12.3%
Selected WACC 11.4%

509563.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 509563.BO:

cost_of_equity (11.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.45) + 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.