511688.BO
Mathew Easow Research Securities Ltd
Price:  
12.55 
INR
Volume:  
33.00
India | Capital Markets
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511688.BO WACC - Weighted Average Cost of Capital

The WACC of Mathew Easow Research Securities Ltd (511688.BO) is 11.8%.

The Cost of Equity of Mathew Easow Research Securities Ltd (511688.BO) is 23.20%.
The Cost of Debt of Mathew Easow Research Securities Ltd (511688.BO) is 11.85%.

Range Selected
Cost of equity 20.50% - 25.90% 23.20%
Tax rate 23.70% - 28.10% 25.90%
Cost of debt 5.10% - 18.60% 11.85%
WACC 7.5% - 16.1% 11.8%
WACC

511688.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 1.64 1.94
Additional risk adjustments 0.0% 0.5%
Cost of equity 20.50% 25.90%
Tax rate 23.70% 28.10%
Debt/Equity ratio 3.59 3.59
Cost of debt 5.10% 18.60%
After-tax WACC 7.5% 16.1%
Selected WACC 11.8%

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 (23.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.64) + 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.