512381.BO
Starteck Finance Ltd
Price:  
298.7 
INR
Volume:  
3,691
India | Diversified Financial Services

512381.BO WACC - Weighted Average Cost of Capital

The WACC of Starteck Finance Ltd (512381.BO) is 7.6%.

The Cost of Equity of Starteck Finance Ltd (512381.BO) is 23.65%.
The Cost of Debt of Starteck Finance Ltd (512381.BO) is 5%.

RangeSelected
Cost of equity18.1% - 29.2%23.65%
Tax rate10.1% - 15.9%13%
Cost of debt5.0% - 5.0%5%
WACC6.8% - 8.4%7.6%
WACC

512381.BO WACC calculation

CategoryLowHigh
Long-term bond rate7.5%8.0%
Equity market risk premium6.9%7.9%
Adjusted beta1.532.61
Additional risk adjustments0.0%0.5%
Cost of equity18.1%29.2%
Tax rate10.1%15.9%
Debt/Equity ratio
4.974.97
Cost of debt5.0%5.0%
After-tax WACC6.8%8.4%
Selected WACC7.6%

512381.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 512381.BO:

cost_of_equity (23.65%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (1.53) + 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.