The WACC of Alexander Stamps and Coin Ltd (511463.BO) is 11.0%.
Range | Selected | |
Cost of equity | 9.8% - 12.5% | 11.15% |
Tax rate | 3.3% - 11.6% | 7.45% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 9.7% - 12.3% | 11.0% |
Category | Low | High |
Long-term bond rate | 6.9% | 7.4% |
Equity market risk premium | 8.3% | 9.3% |
Adjusted beta | 0.35 | 0.49 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 9.8% | 12.5% |
Tax rate | 3.3% | 11.6% |
Debt/Equity ratio | 0.01 | 0.01 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 9.7% | 12.3% |
Selected WACC | 11.0% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
511463.BO | Alexander Stamps and Coin Ltd | 0.01 | -0.34 | -0.34 |
501477.BO | Muller and Phipps (India) Ltd | 0.04 | 0.09 | 0.09 |
506863.BO | Swadeshi Industries and Leasing Ltd | 0 | 0.34 | 0.34 |
530187.BO | Atharv Enterprises Ltd | 0.03 | 0.87 | 0.84 |
530251.BO | Risa International Ltd | 0.15 | -0.14 | -0.12 |
530445.BO | Sumeru Industries Ltd | 0 | 0.51 | 0.51 |
Low | High | |
Unlevered beta | 0.09 | 0.34 |
Relevered beta | 0.03 | 0.24 |
Adjusted relevered beta | 0.35 | 0.49 |
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 511463.BO:
cost_of_equity (11.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.35) + 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.