518075.BO WACC - Weighted Average Cost of Capital
The WACC of Suraj Products Ltd (518075.BO) is 13.1%.
| Range | Selected | |
| Cost of equity | 12.2% - 14.9% | 13.55% |
| Tax rate | 25.2% - 26.6% | 25.9% |
| Cost of debt | 6.4% - 7.5% | 6.95% |
| WACC | 11.8% - 14.3% | 13.1% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.65 | 0.75 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.2% | 14.9% |
| Tax rate | 25.2% | 26.6% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 6.4% | 7.5% |
| After-tax WACC | 11.8% | 14.3% |
| Selected WACC | 13.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 518075.BO | Suraj Products Ltd | 0.06 | 1.41 | 1.35 |
| 504605.BO | Uni-Abex Alloy Products Ltd | 0.03 | 0.58 | 0.57 |
| 504646.BO | Bhagwati Autocast Ltd | 0.11 | 0.05 | 0.04 |
| 513043.BO | Remi Edelstahl Tubulars Ltd | 0.14 | 0.58 | 0.53 |
| 513361.BO | India Steel Works Ltd | 0.4 | 1.15 | 0.89 |
| 517449.BO | Magna Electro Castings Ltd | 0.02 | 1.22 | 1.2 |
| 530615.BO | Garg Furnace Ltd | 0.01 | 0.19 | 0.19 |
| 531810.BO | Metal Coatings (India) Ltd | 0.03 | 0.05 | 0.05 |
| SHYAMCENT.NS | Shyam Century Ferrous Ltd | 0.03 | 0.67 | 0.65 |
| ZENITHSTL.NS | Zenith Steel Pipes & Industries Ltd | 1.73 | 0.78 | 0.34 |
| Low | High | |
| Unlevered beta | 0.45 | 0.6 |
| Relevered beta | 0.48 | 0.63 |
| Adjusted relevered beta | 0.65 | 0.75 |
518075.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 518075.BO:
cost_of_equity (13.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.65) + 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.