526861.BO
Rishi Laser Ltd
Price:  
147.50 
INR
Volume:  
10,759.00
India | Machinery
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526861.BO WACC - Weighted Average Cost of Capital

The WACC of Rishi Laser Ltd (526861.BO) is 14.5%.

The Cost of Equity of Rishi Laser Ltd (526861.BO) is 14.80%.
The Cost of Debt of Rishi Laser Ltd (526861.BO) is 13.30%.

Range Selected
Cost of equity 13.20% - 16.40% 14.80%
Tax rate 7.30% - 8.40% 7.85%
Cost of debt 8.60% - 18.00% 13.30%
WACC 12.6% - 16.4% 14.5%
WACC

526861.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.77 0.91
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.20% 16.40%
Tax rate 7.30% 8.40%
Debt/Equity ratio 0.15 0.15
Cost of debt 8.60% 18.00%
After-tax WACC 12.6% 16.4%
Selected WACC 14.5%

526861.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 526861.BO:

cost_of_equity (14.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.77) + 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.