511463.BO
Alexander Stamps and Coin Ltd
Price:  
11.83 
INR
Volume:  
17,922
India | Distributors

511463.BO WACC - Weighted Average Cost of Capital

The WACC of Alexander Stamps and Coin Ltd (511463.BO) is 11.0%.

The Cost of Equity of Alexander Stamps and Coin Ltd (511463.BO) is 11.15%.
The Cost of Debt of Alexander Stamps and Coin Ltd (511463.BO) is 5%.

RangeSelected
Cost of equity9.8% - 12.5%11.15%
Tax rate3.3% - 11.6%7.45%
Cost of debt5.0% - 5.0%5%
WACC9.7% - 12.3%11.0%
WACC

511463.BO WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.350.49
Additional risk adjustments0.0%0.5%
Cost of equity9.8%12.5%
Tax rate3.3%11.6%
Debt/Equity ratio
0.010.01
Cost of debt5.0%5.0%
After-tax WACC9.7%12.3%
Selected WACC11.0%

511463.BO WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.090.34
Relevered beta0.030.24
Adjusted relevered beta0.350.49

511463.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 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.