511688.BO WACC - Weighted Average Cost of Capital
The WACC of Mathew Easow Research Securities Ltd (511688.BO) is 11.7%.
| Range | Selected | |
| Cost of equity | 19.8% - 25.9% | 22.85% |
| Tax rate | 23.7% - 28.1% | 25.9% |
| Cost of debt | 5.1% - 18.6% | 11.85% |
| WACC | 7.4% - 16.1% | 11.7% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.55 | 1.94 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 19.8% | 25.9% |
| Tax rate | 23.7% | 28.1% |
| Debt/Equity ratio | 3.61 | 3.61 |
| Cost of debt | 5.1% | 18.6% |
| After-tax WACC | 7.4% | 16.1% |
| Selected WACC | 11.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 511688.BO | Mathew Easow Research Securities Ltd | 3.61 | 0.09 | 0.03 |
| 512215.BO | Stephanotis Finance Ltd | 0.06 | 0.84 | 0.8 |
| 530249.BO | Bridge Securities Ltd | 0 | 0.89 | 0.89 |
| 530663.BO | Goyal Associates Ltd | 0.18 | 0.64 | 0.57 |
| 531025.BO | Visagar Financial Services Ltd | 1.51 | 0.08 | 0.04 |
| 531176.BO | Mefcom Capital Markets Ltd | 0.01 | 0.18 | 0.18 |
| 531950.BO | Vertex Securities Ltd | 0.15 | 1.02 | 0.92 |
| 531996.BO | Odyssey Corporation Ltd | 0.02 | 0.92 | 0.9 |
| 538708.BO | Econo Trade (India) Ltd | 2.26 | 1.28 | 0.48 |
| ONELIFECAP.NS | Onelife Capital Advisors Ltd | 1.93 | 1.25 | 0.52 |
| Low | High | |
| Unlevered beta | 0.5 | 0.66 |
| Relevered beta | 1.82 | 2.4 |
| Adjusted relevered beta | 1.55 | 1.94 |
511688.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 511688.BO:
cost_of_equity (22.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.55) + 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.