519214.BO WACC - Weighted Average Cost of Capital
The WACC of Williamson Financial Services Ltd (519214.BO) is 4.9%.
| Range | Selected | |
| Cost of equity | 14.5% - 75.5% | 45% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 4.0% - 8.1% | 6.05% |
| WACC | 3.0% - 6.8% | 4.9% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.92 | 7.26 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.5% | 75.5% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 58.26 | 58.26 |
| Cost of debt | 4.0% | 8.1% |
| After-tax WACC | 3.0% | 6.8% |
| Selected WACC | 4.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 519214.BO | Williamson Financial Services Ltd | 58.26 | 0.15 | 0 |
| 507962.BO | Rajath Finance Ltd | 1.23 | 1.07 | 0.58 |
| 511355.BO | India Cements Capital Ltd | 1.36 | 0.5 | 0.26 |
| 531091.BO | United Credit Ltd | 0 | -0.53 | -0.53 |
| 531327.BO | Charms Industries Ltd | 0.02 | 0.03 | 0.03 |
| 535667.BO | India Finsec Ltd | 0.45 | -0.43 | -0.32 |
| 538476.BO | Capital Trade Links Ltd | 0.64 | -0.07 | -0.05 |
| 538597.BO | TTI Enterprise Ltd | 0.05 | 1.13 | 1.09 |
| 538834.BO | Meenakshi Enterprises Ltd | 0.31 | 0.3 | 0.24 |
| DCMFINSERV.NS | DCM Financial Services Ltd | 3.77 | 0.93 | 0.26 |
| Low | High | |
| Unlevered beta | 0.02 | 0.25 |
| Relevered beta | 0.88 | 10.34 |
| Adjusted relevered beta | 0.92 | 7.26 |
519214.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 519214.BO:
cost_of_equity (45.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.92) + 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.