522183.BO WACC - Weighted Average Cost of Capital
The WACC of ITL Industries Ltd (522183.BO) is 13.6%.
| Range | Selected | |
| Cost of equity | 13.4% - 15.7% | 14.55% |
| Tax rate | 25.1% - 26.2% | 25.65% |
| Cost of debt | 7.8% - 9.1% | 8.45% |
| WACC | 12.6% - 14.7% | 13.6% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.78 | 0.84 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.4% | 15.7% |
| Tax rate | 25.1% | 26.2% |
| Debt/Equity ratio | 0.12 | 0.12 |
| Cost of debt | 7.8% | 9.1% |
| After-tax WACC | 12.6% | 14.7% |
| Selected WACC | 13.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 522183.BO | ITL Industries Ltd | 0.12 | 3.55 | 3.25 |
| 507817.BO | Wires and Fabriks (SA) Ltd | 1.22 | 0.15 | 0.08 |
| 513709.BO | Shilp Gravures Ltd | 0.03 | 1.21 | 1.18 |
| 517514.BO | D & H India Ltd | 0.25 | 0.71 | 0.6 |
| 522005.BO | Austin Engineering Company Ltd | 0.03 | 1.14 | 1.12 |
| 522267.BO | Veejay Lakshmi Engineering Works Ltd | 0.96 | 0.79 | 0.46 |
| 526415.BO | OK Play India Ltd | 0.35 | 0.86 | 0.68 |
| 531888.BO | Rexnord Electronics and Controls Ltd | 0.11 | 0.69 | 0.64 |
| HILTON.NS | Hilton Metal Forging Ltd | 0.29 | 1.68 | 1.38 |
| MACPOWER.NS | Macpower CNC Machines Ltd | 0 | 0.72 | 0.72 |
| MARSHALL.NS | Marshall Machines Ltd | 1.45 | 0.3 | 0.14 |
| Low | High | |
| Unlevered beta | 0.64 | 0.72 |
| Relevered beta | 0.67 | 0.76 |
| Adjusted relevered beta | 0.78 | 0.84 |
522183.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 522183.BO:
cost_of_equity (14.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.78) + 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.