513043.BO WACC - Weighted Average Cost of Capital
The WACC of Remi Edelstahl Tubulars Ltd (513043.BO) is 12.3%.
| Range | Selected | |
| Cost of equity | 12.1% - 14.7% | 13.4% |
| Tax rate | 24.8% - 33.5% | 29.15% |
| Cost of debt | 5.6% - 8.6% | 7.1% |
| WACC | 11.1% - 13.6% | 12.3% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.63 | 0.73 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.1% | 14.7% |
| Tax rate | 24.8% | 33.5% |
| Debt/Equity ratio | 0.14 | 0.14 |
| Cost of debt | 5.6% | 8.6% |
| After-tax WACC | 11.1% | 13.6% |
| Selected WACC | 12.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 513043.BO | Remi Edelstahl Tubulars Ltd | 0.14 | 0.58 | 0.52 |
| 504605.BO | Uni-Abex Alloy Products Ltd | 0.03 | 0.58 | 0.57 |
| 504646.BO | Bhagwati Autocast Ltd | 0.11 | 0.05 | 0.04 |
| 513361.BO | India Steel Works Ltd | 0.44 | 1.15 | 0.87 |
| 513472.BO | Simplex Castings Ltd | 0.28 | 0.55 | 0.46 |
| 517449.BO | Magna Electro Castings Ltd | 0.03 | 1.22 | 1.19 |
| 518075.BO | Suraj Products Ltd | 0.06 | 1.41 | 1.35 |
| 530615.BO | Garg Furnace Ltd | 0.01 | 0.19 | 0.19 |
| 531810.BO | Metal Coatings (India) Ltd | 0.03 | 0.05 | 0.05 |
| ZENITHSTL.NS | Zenith Steel Pipes & Industries Ltd | 1.91 | 0.75 | 0.31 |
| Low | High | |
| Unlevered beta | 0.4 | 0.54 |
| Relevered beta | 0.45 | 0.6 |
| Adjusted relevered beta | 0.63 | 0.73 |
513043.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 513043.BO:
cost_of_equity (13.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.63) + 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.