526407.BO WACC - Weighted Average Cost of Capital

The WACC of Ritesh Properties and Industries Ltd (526407.BO) is 14.1%.

The Cost of Equity of Ritesh Properties and Industries Ltd (526407.BO) is 14.15%.

The Cost of Debt of Ritesh Properties and Industries Ltd (526407.BO) is 16.85%.

	Range	Selected
Cost of equity	12.60% - 15.70%	14.15%
Tax rate	11.40% - 22.90%	17.15%
Cost of debt	7.80% - 25.90%	16.85%
WACC	12.1% - 16.1%	14.1%

WACC

526407.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.68	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.60%	15.70%

Tax rate	11.40%	22.90%
Debt/Equity ratio	0.09	0.09
Cost of debt	7.80%	25.90%

After-tax WACC	12.1%	16.1%


Selected WACC	14.1%

526407.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 526407.BO:

cost_of_equity (14.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.68) + 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.