530609.BO WACC - Weighted Average Cost of Capital
The WACC of Carnation Industries Ltd (530609.BO) is 11.8%.
| Range | Selected | |
| Cost of equity | 10.9% - 13.3% | 12.1% |
| Tax rate | 2.7% - 12.2% | 7.45% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 10.7% - 13.0% | 11.8% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.49 | 0.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.9% | 13.3% |
| Tax rate | 2.7% | 12.2% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 10.7% | 13.0% |
| Selected WACC | 11.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 530609.BO | Carnation Industries Ltd | 0.04 | -0.03 | -0.03 |
| 500058.BO | Bihar Sponge Iron Ltd | 1.01 | 1.34 | 0.68 |
| 513005.BO | VBC Ferro Alloys Ltd | 0.51 | 0.8 | 0.54 |
| 513418.BO | Smiths & Founders India Ltd | 0.01 | 0.86 | 0.86 |
| 513460.BO | Mahalaxmi Seamless Ltd | 0.32 | 0.07 | 0.05 |
| 513566.BO | Nova Iron and Steel Ltd | 4.22 | 1.08 | 0.21 |
| 523832.BO | Mukat Pipes Ltd | 0.19 | 0.29 | 0.24 |
| 531539.BO | Rishabh Digha Steel and Allied Products Ltd | 0 | 0.2 | 0.2 |
| 539798.BO | Umiya Tubes Ltd | 0.38 | -0.09 | -0.06 |
| PRAKASHSTL.NS | Prakash Steelage Ltd | 0.04 | 1.08 | 1.04 |
| Low | High | |
| Unlevered beta | 0.21 | 0.36 |
| Relevered beta | 0.24 | 0.39 |
| Adjusted relevered beta | 0.49 | 0.59 |
530609.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 530609.BO:
cost_of_equity (12.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.49) + 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.