511147.BO
Wall Street Finance Ltd
Price:  
67.01 
INR
Volume:  
977.00
India | Consumer Finance
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511147.BO WACC - Weighted Average Cost of Capital

The WACC of Wall Street Finance Ltd (511147.BO) is 11.5%.

The Cost of Equity of Wall Street Finance Ltd (511147.BO) is 11.90%.
The Cost of Debt of Wall Street Finance Ltd (511147.BO) is 6.60%.

Range Selected
Cost of equity 10.60% - 13.20% 11.90%
Tax rate 27.90% - 29.40% 28.65%
Cost of debt 5.40% - 7.80% 6.60%
WACC 10.2% - 12.8% 11.5%
WACC

511147.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 0.57
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.60% 13.20%
Tax rate 27.90% 29.40%
Debt/Equity ratio 0.06 0.06
Cost of debt 5.40% 7.80%
After-tax WACC 10.2% 12.8%
Selected WACC 11.5%

511147.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 511147.BO:

cost_of_equity (11.90%) = 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.