526775.BO WACC - Weighted Average Cost of Capital
The WACC of Valiant Communications Ltd (526775.BO) is 12.8%.
| Range | Selected | |
| Cost of equity | 11.6% - 14.1% | 12.85% |
| Tax rate | 25.2% - 26.0% | 25.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 11.5% - 14.1% | 12.8% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.57 | 0.67 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.6% | 14.1% |
| Tax rate | 25.2% | 26.0% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 11.5% | 14.1% |
| Selected WACC | 12.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 526775.BO | Valiant Communications Ltd | 0 | 1.05 | 1.05 |
| 517258.BO | Precision Electronics Ltd | 0.12 | 0.64 | 0.59 |
| 532975.BO | Aishwarya Technologies and Telecom Ltd | 0.09 | 0.58 | 0.55 |
| AKSHOPTFBR.NS | Aksh Optifibre Ltd | 0.71 | 1.24 | 0.81 |
| KAVVERITEL.NS | Kavveri Telecom Products Ltd | 0.2 | 0.3 | 0.26 |
| MRO-TEK.NS | MRO-TEK Reality Ltd | 1.02 | 0.75 | 0.43 |
| STLTECH.NS | Sterlite Technologies Ltd | 1.13 | 0.89 | 0.48 |
| TNTELE.NS | Tamilnadu Telecommunication Ltd | 0.78 | 0.32 | 0.2 |
| TST.VN | Telecommunication Technical Service JSC | 0.73 | 0.25 | 0.16 |
| UNI.VN | Vien Lien JSC | 1.15 | 0.41 | 0.22 |
| Low | High | |
| Unlevered beta | 0.36 | 0.51 |
| Relevered beta | 0.36 | 0.51 |
| Adjusted relevered beta | 0.57 | 0.67 |
526775.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 526775.BO:
cost_of_equity (12.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.57) + 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.