530027.BO WACC - Weighted Average Cost of Capital
The WACC of Aadi Industries Ltd (530027.BO) is 10.0%.
| Range | Selected | |
| Cost of equity | 15.4% - 20.6% | 18% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.8% - 11.1% | 10.0% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.03 | 1.37 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.4% | 20.6% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 1.24 | 1.24 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.8% | 11.1% |
| Selected WACC | 10.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 530027.BO | Aadi Industries Ltd | 1.24 | 1.09 | 0.58 |
| 526717.BO | Gopala Polyplast Ltd | 1.39 | 2.04 | 1.03 |
| 533608.BO | RDB Rasayans Ltd | 0 | 1.62 | 1.61 |
| AMJUMBO.NS | A and M Jumbo Bags Ltd | 3.02 | 0.14 | 0.04 |
| EMMBI.NS | Emmbi Industries Ltd | 0.71 | 1.84 | 1.23 |
| GUJRAFFIA.NS | Gujarat Raffia Industries Ltd | 0.17 | 0.78 | 0.7 |
| RMCL.NS | Radha Madhav Corp Ltd | 1.67 | -0.13 | -0.06 |
| RPPL.NS | Rajshree Polypack Ltd | 0.43 | 0.67 | 0.52 |
| TIRUPATI.NS | Shree Tirupati Balajee FIBC Ltd | 0.08 | -0.07 | -0.07 |
| WORTH.NS | Worth Peripherals Ltd | 0.04 | 1.45 | 1.41 |
| Low | High | |
| Unlevered beta | 0.56 | 0.83 |
| Relevered beta | 1.04 | 1.55 |
| Adjusted relevered beta | 1.03 | 1.37 |
530027.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 530027.BO:
cost_of_equity (18.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.03) + 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.