522231.BO WACC - Weighted Average Cost of Capital
The WACC of Conart Engineers Ltd (522231.BO) is 13.3%.
| Range | Selected | |
| Cost of equity | 11.2% - 15.3% | 13.25% |
| Tax rate | 24.4% - 26.2% | 25.3% |
| Cost of debt | 7.5% - 7.5% | 7.5% |
| WACC | 11.2% - 15.3% | 13.3% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.52 | 0.8 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.2% | 15.3% |
| Tax rate | 24.4% | 26.2% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 7.5% | 7.5% |
| After-tax WACC | 11.2% | 15.3% |
| Selected WACC | 13.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 522231.BO | Conart Engineers Ltd | 0 | 0.72 | 0.72 |
| 500426.BO | UTL Industries Ltd | 0.01 | 0.83 | 0.82 |
| 531343.BO | India Infraspace Ltd | 1.9 | -0.19 | -0.08 |
| 531540.BO | Maruti Infrastructure Ltd | 0.13 | 0.75 | 0.69 |
| 531900.BO | CCL International Ltd | 0.41 | 1.27 | 0.97 |
| 540147.BO | Shashijit Infraprojects Ltd | 1.9 | 0.42 | 0.18 |
| BRIGHT.NS | Bright Solar Ltd | 0.09 | 1.6 | 1.5 |
| MUKANDENGG.NS | Mukand Engineers Ltd | 3.55 | 1.35 | 0.37 |
| PBAINFRA.NS | PBA Infrastructure Ltd | 21.75 | 0.54 | 0.03 |
| SKIL.NS | Skil Infrastructure Ltd | 37.02 | -0.06 | 0 |
| Low | High | |
| Unlevered beta | 0.29 | 0.7 |
| Relevered beta | 0.28 | 0.7 |
| Adjusted relevered beta | 0.52 | 0.8 |
522231.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 522231.BO:
cost_of_equity (13.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.52) + 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.