526137.BO WACC - Weighted Average Cost of Capital
The WACC of Shetron Ltd (526137.BO) is 14.6%.
| Range | Selected | |
| Cost of equity | 15.4% - 19.5% | 17.45% |
| Tax rate | 26.8% - 29.4% | 28.1% |
| Cost of debt | 12.1% - 14.0% | 13.05% |
| WACC | 13.1% - 16.1% | 14.6% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.03 | 1.25 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.4% | 19.5% |
| Tax rate | 26.8% | 29.4% |
| Debt/Equity ratio | 0.55 | 0.55 |
| Cost of debt | 12.1% | 14.0% |
| After-tax WACC | 13.1% | 16.1% |
| Selected WACC | 14.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 526137.BO | Shetron Ltd | 0.36 | 0.78 | 0.62 |
| 515147.BO | Haldyn Glass Ltd | 0.2 | 1.01 | 0.88 |
| 523840.BO | Innovative Tech Pack Ltd | 0.61 | 0.64 | 0.45 |
| 526747.BO | PG Foils Ltd | 0.21 | 1.43 | 1.24 |
| 530063.BO | Yashraj Containeurs Ltd | 5.51 | -0.69 | -0.14 |
| 530315.BO | Hindustan Tin Works Ltd | 0.52 | 1.34 | 0.97 |
| 539354.BO | Polyspin Exports Ltd | 1.99 | 0.51 | 0.21 |
| AMDIND.NS | AMD Industries Ltd | 0.91 | 1.99 | 1.21 |
| PEARLPOLY.NS | Pearl Polymers Ltd | 0 | 1 | 1 |
| TPLPLASTEH.NS | TPL Plastech Ltd | 0.05 | 1.63 | 1.58 |
| Low | High | |
| Unlevered beta | 0.78 | 0.98 |
| Relevered beta | 1.04 | 1.37 |
| Adjusted relevered beta | 1.03 | 1.25 |
526137.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 526137.BO:
cost_of_equity (17.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.03) + 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.