511754.BO WACC - Weighted Average Cost of Capital
The WACC of Shalibhadra Finance Ltd (511754.BO) is 10.9%.
| Range | Selected | |
| Cost of equity | 10.6% - 13.3% | 11.95% |
| Tax rate | 26.0% - 26.8% | 26.4% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.7% - 12.1% | 10.9% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.45 | 0.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.6% | 13.3% |
| Tax rate | 26.0% | 26.8% |
| Debt/Equity ratio | 0.15 | 0.15 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.7% | 12.1% |
| Selected WACC | 10.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 511754.BO | Shalibhadra Finance Ltd | 0.15 | 0.35 | 0.32 |
| 511147.BO | Wall Street Finance Ltd | 0.05 | 0.81 | 0.78 |
| 511355.BO | India Cements Capital Ltd | 1.44 | 0.5 | 0.24 |
| 530127.BO | NPR Finance Ltd | 0.28 | 0.46 | 0.38 |
| 531091.BO | United Credit Ltd | 0 | -0.53 | -0.53 |
| 531255.BO | Paragon Finance Ltd | 0.03 | 0.57 | 0.55 |
| 531327.BO | Charms Industries Ltd | 0.02 | 0.03 | 0.03 |
| 531688.BO | Prithvi Exchange (India) Ltd | 0.01 | 0.68 | 0.67 |
| 535667.BO | India Finsec Ltd | 0.42 | -0.43 | -0.32 |
| 538476.BO | Capital Trade Links Ltd | 0.7 | -0.07 | -0.05 |
| Low | High | |
| Unlevered beta | 0.16 | 0.34 |
| Relevered beta | 0.18 | 0.39 |
| Adjusted relevered beta | 0.45 | 0.59 |
511754.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 511754.BO:
cost_of_equity (11.95%) = 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.