530577.BO WACC - Weighted Average Cost of Capital
The WACC of Ladderup Finance Ltd (530577.BO) is 11.4%.
| Range | Selected | |
| Cost of equity | 10.3% - 13.2% | 11.75% |
| Tax rate | 31.7% - 39.0% | 35.35% |
| Cost of debt | 8.6% - 23.3% | 15.95% |
| WACC | 9.4% - 13.4% | 11.4% |
| 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 | 10.3% | 13.2% |
| Tax rate | 31.7% | 39.0% |
| Debt/Equity ratio | 0.25 | 0.25 |
| Cost of debt | 8.6% | 23.3% |
| After-tax WACC | 9.4% | 13.4% |
| Selected WACC | 11.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 530577.BO | Ladderup Finance Ltd | 0.25 | 0.3 | 0.26 |
| 506134.BO | Intellivate Capital Ventures Ltd | 0.41 | -0.82 | -0.64 |
| 511012.BO | Yamini Investments Company Ltd | 0.18 | 0.42 | 0.38 |
| 512344.BO | Aravali Securities and Finance Ltd | 0.51 | 0.07 | 0.05 |
| 531502.BO | Esaar (India) Ltd | 1.46 | -0.41 | -0.21 |
| 531515.BO | Mahan Industries Ltd | 0.28 | -0.68 | -0.58 |
| 532333.BO | HB Portfolio Ltd | 0.01 | 0.83 | 0.83 |
| 538319.BO | GCM Capital Advisors Ltd | 0.07 | 0.9 | 0.85 |
| 539875.BO | RSD Finance Ltd | 0.16 | 0.15 | 0.13 |
| MCDHOLDING.NS | McDowell Holdings Ltd | 0.22 | 1.08 | 0.95 |
| Low | High | |
| Unlevered beta | 0.1 | 0.31 |
| Relevered beta | 0.12 | 0.36 |
| Adjusted relevered beta | 0.41 | 0.57 |
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.