526473.BO WACC - Weighted Average Cost of Capital
The WACC of Elegant Floriculture & Agrotech (India) Ltd (526473.BO) is 9.5%.
| Range | Selected | |
| Cost of equity | 12.4% - 18.4% | 15.4% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.0% - 10.9% | 9.5% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.67 | 1.13 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.4% | 18.4% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.0% | 10.9% |
| Selected WACC | 9.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 526473.BO | Elegant Floriculture & Agrotech (India) Ltd | 0.96 | 3.55 | 2.13 |
| 536493.BO | JK Agri Genetics Ltd | 0.18 | 0.67 | 0.6 |
| 538921.BO | Raghuvansh Agrofarms Ltd | 0.19 | 0.02 | 0.02 |
| BSHSL.NS | Bombay Super Hybrid Seeds Ltd | 0.03 | 1.32 | 1.29 |
| DBF.AX | Duxton Broadacre Farms Ltd | 0.8 | -0.21 | -0.13 |
| HARRMALAYA.NS | Harrisons Malayalam Ltd | 0.27 | 1.01 | 0.85 |
| HKB.VN | Hanoi Kinhbac Agriculture and Food JSC | 0.33 | 0.93 | 0.75 |
| KSCL.NS | Kaveri Seed Company Ltd | 0 | 1.06 | 1.06 |
| MALPAC.KL | Malpac Holdings Bhd | 0.06 | -0.12 | -0.12 |
| NATHBIOGEN.NS | Nath Bio-Genes (I) Ltd | 0.31 | 1.43 | 1.18 |
| PINEPAC.KL | Pinehill Pacific Bhd | 0 | 0.31 | 0.31 |
| Low | High | |
| Unlevered beta | 0.6 | 0.85 |
| Relevered beta | 0.51 | 1.19 |
| Adjusted relevered beta | 0.67 | 1.13 |
526473.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 526473.BO:
cost_of_equity (15.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.67) + 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.