512020.BO WACC - Weighted Average Cost of Capital
The WACC of Saraswati Commercial (India) Ltd (512020.BO) is 11.6%.
| Range | Selected | |
| Cost of equity | 10.6% - 12.7% | 11.65% |
| Tax rate | 19.8% - 24.0% | 21.9% |
| Cost of debt | 7.0% - 9.5% | 8.25% |
| WACC | 10.6% - 12.7% | 11.6% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.44 | 0.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.6% | 12.7% |
| Tax rate | 19.8% | 24.0% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 7.0% | 9.5% |
| After-tax WACC | 10.6% | 12.7% |
| Selected WACC | 11.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 512020.BO | Saraswati Commercial (India) Ltd | 0 | -0.6 | -0.6 |
| 511716.BO | Escorts Finance Ltd | 0.27 | 0.23 | 0.19 |
| 538611.BO | Real Touch Finance Ltd | 2.44 | 0.8 | 0.28 |
| 538943.BO | Sonal Mercantile Ltd | 2.05 | 0.37 | 0.14 |
| 539174.BO | Helpage Finlease Ltd | 2.62 | 0.36 | 0.12 |
| 539217.BO | Srestha Finvest Ltd | 0.63 | -0.16 | -0.11 |
| 539391.BO | Acme Resources Ltd | 0.12 | 0.73 | 0.66 |
| 540135.BO | ARC Finance Ltd | 0.2 | 0.33 | 0.29 |
| GLFL.NS | Gujarat Lease Financing Ltd | 0.51 | 0.56 | 0.4 |
| NDGL.NS | Naga Dhunseri Group Ltd | 0.01 | 1.08 | 1.08 |
| Low | High | |
| Unlevered beta | 0.17 | 0.28 |
| Relevered beta | 0.16 | 0.28 |
| Adjusted relevered beta | 0.44 | 0.52 |
512020.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 512020.BO:
cost_of_equity (11.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.44) + 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.