519439.BO WACC - Weighted Average Cost of Capital
The WACC of Pioneer Agro Extracts Ltd (519439.BO) is 11.3%.
| Range | Selected | |
| Cost of equity | 14.8% - 17.3% | 16.05% |
| Tax rate | 4.3% - 8.5% | 6.4% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 10.8% - 11.8% | 11.3% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.96 | 1.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.8% | 17.3% |
| Tax rate | 4.3% | 8.5% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 10.8% | 11.8% |
| Selected WACC | 11.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 519439.BO | Pioneer Agro Extracts Ltd | 0.84 | 3.55 | 1.97 |
| 500458.BO | Kore Foods Ltd | 0.06 | 0.98 | 0.93 |
| 507300.BO | Ravalgaon Sugar Farm Ltd | 0.32 | 0.68 | 0.52 |
| 514197.BO | S & T Corporation Ltd | 0.15 | -0.87 | -0.76 |
| 524564.BO | Gayatri BioOrganics Ltd | 0.62 | 0.76 | 0.48 |
| 526945.BO | Tyroon Tea Co Ltd | 0.15 | 0.6 | 0.52 |
| 530617.BO | Sampre Nutritions Ltd | 0.31 | 1.03 | 0.79 |
| 531153.BO | Diligent Industries Ltd | 1.22 | 0.84 | 0.39 |
| 531982.BO | Spectrum Foods Ltd | 0.03 | 0.49 | 0.48 |
| 540850.BO | Jhandewalas Foods Ltd | 0.21 | 0.03 | 0.02 |
| PKTEA.NS | Peria Karamalai Tea and Produce Company Ltd | 0.21 | 0.68 | 0.57 |
| Low | High | |
| Unlevered beta | 0.48 | 0.52 |
| Relevered beta | 0.94 | 1.01 |
| Adjusted relevered beta | 0.96 | 1.01 |
519439.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 519439.BO:
cost_of_equity (16.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.96) + 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.