530577.BO
Ladderup Finance Ltd
Price:  
55.50 
INR
Volume:  
2,339.00
India | Capital Markets
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530577.BO WACC - Weighted Average Cost of Capital

The WACC of Ladderup Finance Ltd (530577.BO) is 11.4%.

The Cost of Equity of Ladderup Finance Ltd (530577.BO) is 11.75%.
The Cost of Debt of Ladderup Finance Ltd (530577.BO) is 15.95%.

Range Selected
Cost of equity 10.30% - 13.20% 11.75%
Tax rate 31.70% - 39.00% 35.35%
Cost of debt 8.60% - 23.30% 15.95%
WACC 9.4% - 13.4% 11.4%
WACC

530577.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.41 0.57
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.30% 13.20%
Tax rate 31.70% 39.00%
Debt/Equity ratio 0.24 0.24
Cost of debt 8.60% 23.30%
After-tax WACC 9.4% 13.4%
Selected WACC 11.4%

530577.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 530577.BO:

cost_of_equity (11.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.41) + 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.