The WACC of Rama Phosphates Ltd (524037.BO) is 15.0%.
Range | Selected | |
Cost of equity | 13.3% - 16.8% | 15.05% |
Tax rate | 25.6% - 28.9% | 27.25% |
Cost of debt | 8.2% - 32.4% | 20.3% |
WACC | 12.6% - 17.4% | 15.0% |
Category | Low | High |
Long-term bond rate | 7.5% | 8.0% |
Equity market risk premium | 6.9% | 7.9% |
Adjusted beta | 0.83 | 1.05 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 13.3% | 16.8% |
Tax rate | 25.6% | 28.9% |
Debt/Equity ratio | 0.1 | 0.1 |
Cost of debt | 8.2% | 32.4% |
After-tax WACC | 12.6% | 17.4% |
Selected WACC | 15.0% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
524037.BO | Rama Phosphates Ltd | 0.1 | 2.15 | 2 |
524288.BO | Aimco Pesticides Ltd | 0.17 | 1.11 | 0.99 |
524687.BO | Basant Agro Tech (India) Ltd | 0.96 | 1.24 | 0.72 |
524808.BO | Phyto Chem India Ltd | 1.2 | 0.22 | 0.12 |
530883.BO | Super Crop Safe Ltd | 0.81 | 1.14 | 0.71 |
542123.BO | Phosphate Company Ltd | 0.37 | -0.74 | -0.58 |
ARIES.NS | Aries Agro Ltd | 0.11 | 1.84 | 1.71 |
EXCELINDUS.NS | Excel Industries Ltd | 0 | 1.29 | 1.29 |
KHAICHEM.NS | Khaitan Chemicals and Fertilizers Ltd | 0.33 | 1.61 | 1.29 |
KRISHANA.NS | Krishana Phoschem Ltd | 0.14 | 0.8 | 0.73 |
MBAPL.NS | Madhya Bharat Agro Products Ltd | 0.08 | 0.2 | 0.19 |
Low | High | |
Unlevered beta | 0.72 | 0.99 |
Relevered beta | 0.75 | 1.07 |
Adjusted relevered beta | 0.83 | 1.05 |
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 524037.BO:
cost_of_equity (15.05%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (0.83) + 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.