526481.BO WACC - Weighted Average Cost of Capital
The WACC of Phoenix International Ltd (526481.BO) is 13.1%.
| Range | Selected | |
| Cost of equity | 16.8% - 20.3% | 18.55% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 8.0% - 12.1% | 10.05% |
| WACC | 11.5% - 14.7% | 13.1% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.19 | 1.34 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 16.8% | 20.3% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 0.9 | 0.9 |
| Cost of debt | 8.0% | 12.1% |
| After-tax WACC | 11.5% | 14.7% |
| Selected WACC | 13.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 526481.BO | Phoenix International Ltd | 0.9 | 1.29 | 0.79 |
| 514010.BO | Himachal Fibres Ltd | 0.01 | 0.72 | 0.71 |
| 523842.BO | Super Tannery Ltd | 0.7 | 1.17 | 0.79 |
| 526851.BO | Arex Industries Ltd | 0.23 | 0.45 | 0.39 |
| 531680.BO | Mayur Leather Products Ltd | 1.56 | 0.91 | 0.43 |
| BATAINDIA.NS | Bata India Ltd | 0.09 | 0.94 | 0.88 |
| LIBERTSHOE.NS | Liberty Shoes Ltd | 0.23 | 1.64 | 1.42 |
| LYPSAGEMS.NS | Lypsa Gems & Jewellery Ltd | 0.55 | 1.74 | 1.26 |
| MIRZAINT.NS | Mirza International Ltd | 0.08 | 1.23 | 1.17 |
| RELAXO.NS | Relaxo Footwears Ltd | 0.02 | 1 | 0.99 |
| Low | High | |
| Unlevered beta | 0.79 | 0.93 |
| Relevered beta | 1.28 | 1.51 |
| Adjusted relevered beta | 1.19 | 1.34 |
526481.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 526481.BO:
cost_of_equity (18.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.19) + 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.