523411.BO WACC - Weighted Average Cost of Capital
The WACC of ADC India Communications Ltd (523411.BO) is 11.7%.
| Range | Selected | |
| Cost of equity | 15.2% - 20.5% | 17.85% |
| Tax rate | 25.8% - 26.5% | 26.15% |
| Cost of debt | 7.5% - 7.5% | 7.5% |
| WACC | 10.3% - 13.0% | 11.7% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1 | 1.36 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.2% | 20.5% |
| Tax rate | 25.8% | 26.5% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 7.5% | 7.5% |
| After-tax WACC | 10.3% | 13.0% |
| Selected WACC | 11.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 523411.BO | ADC India Communications Ltd | 1.03 | 0.9 | 0.51 |
| 517258.BO | Precision Electronics Ltd | 0.12 | 0.64 | 0.59 |
| 526775.BO | Valiant Communications Ltd | 0 | 1.05 | 1.05 |
| 532406.BO | Avantel Ltd | 0 | 1.18 | 1.18 |
| 532975.BO | Aishwarya Technologies and Telecom Ltd | 0.09 | 0.58 | 0.55 |
| AKSHOPTFBR.NS | Aksh Optifibre Ltd | 0.71 | 1.24 | 0.82 |
| BIRLACABLE.NS | Birla Cable Ltd | 0.39 | 1.44 | 1.11 |
| KAVVERITEL.NS | Kavveri Telecom Products Ltd | 0.2 | 0.3 | 0.26 |
| MRO-TEK.NS | MRO-TEK Reality Ltd | 1.02 | 0.75 | 0.43 |
| SMARTLINK.NS | Smartlink Holdings Ltd | 0.22 | 1.14 | 0.98 |
| TNTELE.NS | Tamilnadu Telecommunication Ltd | 0.78 | 0.32 | 0.2 |
| Low | High | |
| Unlevered beta | 0.55 | 0.82 |
| Relevered beta | 1 | 1.54 |
| Adjusted relevered beta | 1 | 1.36 |
523411.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 523411.BO:
cost_of_equity (17.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1) + 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.