524622.BO
iStreet Network Ltd
Price:  
4.69 
INR
Volume:  
5,044.00
India | Internet & Direct Marketing Retail
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524622.BO WACC - Weighted Average Cost of Capital

The WACC of iStreet Network Ltd (524622.BO) is 13.2%.

The Cost of Equity of iStreet Network Ltd (524622.BO) is 15.00%.
The Cost of Debt of iStreet Network Ltd (524622.BO) is 5.00%.

Range Selected
Cost of equity 13.50% - 16.50% 15.00%
Tax rate 30.00% - 30.00% 30.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 11.9% - 14.5% 13.2%
WACC

524622.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.79 0.93
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.50% 16.50%
Tax rate 30.00% 30.00%
Debt/Equity ratio 0.18 0.18
Cost of debt 5.00% 5.00%
After-tax WACC 11.9% 14.5%
Selected WACC 13.2%

524622.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 524622.BO:

cost_of_equity (15.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.79) + 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.