522650.BO WACC - Weighted Average Cost of Capital
The WACC of Bemco Hydraulics Ltd (522650.BO) is 11.6%.
| Range | Selected | |
| Cost of equity | 10.7% - 12.8% | 11.75% |
| Tax rate | 31.0% - 37.1% | 34.05% |
| Cost of debt | 7.8% - 19.7% | 13.75% |
| WACC | 10.5% - 12.7% | 11.6% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.46 | 0.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.7% | 12.8% |
| Tax rate | 31.0% | 37.1% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 7.8% | 19.7% |
| After-tax WACC | 10.5% | 12.7% |
| Selected WACC | 11.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 522650.BO | Bemco Hydraulics Ltd | 0.04 | 0.97 | 0.95 |
| 505690.BO | Brady And Morris Engineering Co Ltd | 0.03 | -0.5 | -0.49 |
| 505827.BO | SNL Bearings Ltd | 0 | 1.11 | 1.11 |
| 526073.BO | Galaxy Bearings Ltd | 0.05 | 0.33 | 0.32 |
| 539227.BO | LOYAL EQUIPMENTS Ltd | 0.04 | 0.11 | 0.11 |
| 540519.BO | Meera Industries Ltd | 0.07 | 0.27 | 0.26 |
| MARSHALL.NS | Marshall Machines Ltd | 1.45 | 0.3 | 0.15 |
| NIBL.NS | NRB Industrial Bearings Ltd | 1.84 | 0.5 | 0.22 |
| PREMIER.NS | Premier Ltd | 18.07 | 0.62 | 0.05 |
| SOMICONVEY.NS | Somi Conveyor Beltings Ltd | 0.07 | 0.74 | 0.71 |
| Low | High | |
| Unlevered beta | 0.19 | 0.28 |
| Relevered beta | 0.19 | 0.28 |
| Adjusted relevered beta | 0.46 | 0.52 |
522650.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 522650.BO:
cost_of_equity (11.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.46) + 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.