526481.BO
Phoenix International Ltd
Price:  
40.20 
INR
Volume:  
5,127.00
India | Textiles, Apparel & Luxury Goods
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526481.BO WACC - Weighted Average Cost of Capital

The WACC of Phoenix International Ltd (526481.BO) is 12.5%.

The Cost of Equity of Phoenix International Ltd (526481.BO) is 19.45%.
The Cost of Debt of Phoenix International Ltd (526481.BO) is 10.60%.

Range Selected
Cost of equity 17.10% - 21.80% 19.45%
Tax rate 30.30% - 45.10% 37.70%
Cost of debt 9.10% - 12.10% 10.60%
WACC 11.4% - 13.7% 12.5%
WACC

526481.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 1.23 1.49
Additional risk adjustments 0.0% 0.5%
Cost of equity 17.10% 21.80%
Tax rate 30.30% 45.10%
Debt/Equity ratio 1.14 1.14
Cost of debt 9.10% 12.10%
After-tax WACC 11.4% 13.7%
Selected WACC 12.5%

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 (19.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.23) + 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.