The WACC of Shervani Industrial Syndicate Ltd (526117.BO) is 12.0%.
Range | Selected | |
Cost of equity | 11.3% - 14.5% | 12.9% |
Tax rate | 7.6% - 13.5% | 10.55% |
Cost of debt | 7.0% - 13.3% | 10.15% |
WACC | 10.2% - 13.8% | 12.0% |
Category | Low | High |
Long-term bond rate | 6.9% | 7.4% |
Equity market risk premium | 8.3% | 9.3% |
Adjusted beta | 0.54 | 0.71 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 11.3% | 14.5% |
Tax rate | 7.6% | 13.5% |
Debt/Equity ratio | 0.3 | 0.3 |
Cost of debt | 7.0% | 13.3% |
After-tax WACC | 10.2% | 13.8% |
Selected WACC | 12.0% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
526117.BO | Shervani Industrial Syndicate Ltd | 0.3 | 1.34 | 1.05 |
2379.HK | Zhongtian International Ltd | 7.24 | 0.23 | 0.03 |
500307.BO | Nirlon Ltd | 0.23 | 0.47 | 0.38 |
526407.BO | Ritesh Properties and Industries Ltd | 0.07 | 1.78 | 1.67 |
526727.BO | Garnet Construction Ltd | 0.28 | -0.68 | -0.54 |
534338.BO | Max Heights Infrastucture Ltd | 2.83 | 0.09 | 0.03 |
539042.BO | AGI Infra Ltd | 0.07 | 0.56 | 0.53 |
FMNL.NS | Future Market Networks Ltd | 1.32 | -0.14 | -0.06 |
NILASPACES.NS | Nila Spaces Ltd | 0 | 0.83 | 0.82 |
TCIDEVELOP.NS | TCI Developers Ltd | 0.07 | 0.41 | 0.39 |
Low | High | |
Unlevered beta | 0.24 | 0.44 |
Relevered beta | 0.31 | 0.57 |
Adjusted relevered beta | 0.54 | 0.71 |
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 526117.BO:
cost_of_equity (12.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.54) + 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.