513452.BO WACC - Weighted Average Cost of Capital
The WACC of Elango Industries Ltd (513452.BO) is 12.4%.
| Range | Selected | |
| Cost of equity | 10.5% - 14.4% | 12.45% |
| Tax rate | 2.5% - 3.9% | 3.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 10.5% - 14.4% | 12.4% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.44 | 0.71 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.5% | 14.4% |
| Tax rate | 2.5% | 3.9% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 10.5% | 14.4% |
| Selected WACC | 12.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 513452.BO | Elango Industries Ltd | 0.01 | -0.04 | -0.04 |
| 526237.BO | Morgan Ventures Ltd | 1.33 | 0.16 | 0.07 |
| 532874.BO | Suryachakra Power Corp Ltd | 3.42 | 0.82 | 0.19 |
| 534063.BO | Futuristic Solutions Ltd | 0.01 | 0.08 | 0.08 |
| GIPCL.NS | Gujarat Industries Power Company Ltd | 0.19 | 1.71 | 1.44 |
| JSWENERGY.NS | JSW Energy Ltd | 0.54 | 1.05 | 0.69 |
| MPOW.JK | MegaPower Makmur Tbk PT | 0.43 | 0.59 | 0.42 |
| RPOWER.NS | Reliance Power Ltd | 0.7 | 2.09 | 1.25 |
| RTNPOWER.NS | RattanIndia Power Ltd | 0.44 | 1.1 | 0.77 |
| SCG.BK | Sahacogen (Chonburi) PCL | 1.92 | 0.5 | 0.17 |
| Low | High | |
| Unlevered beta | 0.18 | 0.52 |
| Relevered beta | 0.16 | 0.57 |
| Adjusted relevered beta | 0.44 | 0.71 |
513452.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 513452.BO:
cost_of_equity (12.45%) = 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.