The WACC of Shilp Gravures Ltd (513709.BO) is 13.1%.
Range | Selected | |
Cost of equity | 11.5% - 14.8% | 13.15% |
Tax rate | 19.7% - 22.0% | 20.85% |
Cost of debt | 7.5% - 10.6% | 9.05% |
WACC | 11.4% - 14.8% | 13.1% |
Category | Low | High |
Long-term bond rate | 6.9% | 7.4% |
Equity market risk premium | 8.3% | 9.3% |
Adjusted beta | 0.55 | 0.75 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 11.5% | 14.8% |
Tax rate | 19.7% | 22.0% |
Debt/Equity ratio | 0.01 | 0.01 |
Cost of debt | 7.5% | 10.6% |
After-tax WACC | 11.4% | 14.8% |
Selected WACC | 13.1% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
513709.BO | Shilp Gravures Ltd | 0.01 | 1.21 | 1.2 |
505358.BO | Integra Engineering India Ltd | 0.03 | 1.16 | 1.13 |
505690.BO | Brady And Morris Engineering Co Ltd | 0.03 | -0.5 | -0.49 |
507817.BO | Wires and Fabriks (SA) Ltd | 2.08 | 0.15 | 0.06 |
522005.BO | Austin Engineering Company Ltd | 0.03 | 1.14 | 1.12 |
522267.BO | Veejay Lakshmi Engineering Works Ltd | 1.08 | 0.79 | 0.43 |
526415.BO | OK Play India Ltd | 0.3 | 0.86 | 0.69 |
531888.BO | Rexnord Electronics and Controls Ltd | 0.26 | 0.69 | 0.58 |
539227.BO | LOYAL EQUIPMENTS Ltd | 0.03 | 0.11 | 0.11 |
MARSHALL.NS | Marshall Machines Ltd | 1.47 | 0.4 | 0.19 |
Low | High | |
Unlevered beta | 0.33 | 0.62 |
Relevered beta | 0.33 | 0.63 |
Adjusted relevered beta | 0.55 | 0.75 |
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 513709.BO:
cost_of_equity (13.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.55) + 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.