526373.BO WACC - Weighted Average Cost of Capital
The WACC of Cindrella Hotels Ltd (526373.BO) is 11.2%.
| Range | Selected | |
| Cost of equity | 10.7% - 12.5% | 11.6% |
| Tax rate | 14.4% - 30.6% | 22.5% |
| Cost of debt | 8.6% - 8.6% | 8.6% |
| WACC | 10.4% - 12.0% | 11.2% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.46 | 0.5 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.7% | 12.5% |
| Tax rate | 14.4% | 30.6% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 8.6% | 8.6% |
| After-tax WACC | 10.4% | 12.0% |
| Selected WACC | 11.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 526373.BO | Cindrella Hotels Ltd | 0.09 | 0.85 | 0.79 |
| 508664.BO | Best Eastern Hotels Ltd | 0.11 | 0.29 | 0.27 |
| 509546.BO | Graviss Hospitality Ltd | 0.01 | 0.22 | 0.22 |
| 526755.BO | Velan Hotels Ltd | 2.49 | 0.54 | 0.18 |
| 526761.BO | Howard Hotels Ltd | 0.25 | 0.2 | 0.17 |
| 532124.BO | Reliable Ventures India Ltd | 0.03 | 0.49 | 0.48 |
| 532992.BO | CHL Ltd | 1.39 | 0.38 | 0.18 |
| AHLEAST.NS | Asian Hotels East Ltd | 1.44 | 0.55 | 0.26 |
| BLUECOAST.NS | Blue Coast Hotels Ltd | 1.1 | -0.29 | -0.15 |
| VICEROY.NS | Viceroy Hotels Ltd | 0.36 | -0.21 | -0.16 |
| Low | High | |
| Unlevered beta | 0.18 | 0.23 |
| Relevered beta | 0.19 | 0.25 |
| Adjusted relevered beta | 0.46 | 0.5 |
526373.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 526373.BO:
cost_of_equity (11.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.46) + 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.