526335.BO WACC - Weighted Average Cost of Capital
The WACC of Shreyas Intermediates Ltd (526335.BO) is 13.5%.
| Range | Selected | |
| Cost of equity | 12.8% - 16.5% | 14.65% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 11.9% - 15.1% | 13.5% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.72 | 0.92 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.8% | 16.5% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 0.12 | 0.12 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 11.9% | 15.1% |
| Selected WACC | 13.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 526335.BO | Shreyas Intermediates Ltd | 0.12 | 0.46 | 0.43 |
| 500248.BO | Krishna Filament Industries Ltd | 0.54 | 1.08 | 0.78 |
| 523586.BO | Indian Toners & Developers Ltd | 0.01 | 1.42 | 1.41 |
| 524218.BO | Resonance Specialties Ltd | 0.04 | 1.8 | 1.75 |
| 524592.BO | JD Orgochem Ltd | 0.06 | 0.62 | 0.6 |
| 531157.BO | Organic Coatings Ltd | 0.84 | 0.54 | 0.34 |
| 531163.BO | Kemistar Corporation Ltd | 0.08 | 0.47 | 0.45 |
| ARVEE.NS | Arvee Laboratories (India) Ltd | 0.01 | 0.88 | 0.87 |
| UCL.NS | Ushanti Colour Chem Ltd | 0.88 | 1.21 | 0.75 |
| VSCL.NS | Vadivarhe Speciality Chemicals Ltd | 0.69 | 0.16 | 0.11 |
| Low | High | |
| Unlevered beta | 0.54 | 0.76 |
| Relevered beta | 0.58 | 0.88 |
| Adjusted relevered beta | 0.72 | 0.92 |
526335.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 526335.BO:
cost_of_equity (14.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.72) + 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.