519003.BO
Modi Naturals Ltd
Price:  
470.60 
INR
Volume:  
904.00
India | Food Products
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519003.BO WACC - Weighted Average Cost of Capital

The WACC of Modi Naturals Ltd (519003.BO) is 13.2%.

The Cost of Equity of Modi Naturals Ltd (519003.BO) is 14.70%.
The Cost of Debt of Modi Naturals Ltd (519003.BO) is 9.60%.

Range Selected
Cost of equity 13.00% - 16.40% 14.70%
Tax rate 23.00% - 25.90% 24.45%
Cost of debt 8.60% - 10.60% 9.60%
WACC 11.6% - 14.7% 13.2%
WACC

519003.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.73 0.92
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.00% 16.40%
Tax rate 23.00% 25.90%
Debt/Equity ratio 0.26 0.26
Cost of debt 8.60% 10.60%
After-tax WACC 11.6% 14.7%
Selected WACC 13.2%

519003.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 519003.BO:

cost_of_equity (14.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.73) + 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.