530663.BO WACC - Weighted Average Cost of Capital
The WACC of Goyal Associates Ltd (530663.BO) is 12.6%.
| Range | Selected | |
| Cost of equity | 11.8% - 15.6% | 13.7% |
| Tax rate | 16.7% - 20.4% | 18.55% |
| Cost of debt | 7.6% - 7.6% | 7.6% |
| WACC | 11.0% - 14.1% | 12.6% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.6 | 0.83 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.8% | 15.6% |
| Tax rate | 16.7% | 20.4% |
| Debt/Equity ratio | 0.18 | 0.18 |
| Cost of debt | 7.6% | 7.6% |
| After-tax WACC | 11.0% | 14.1% |
| Selected WACC | 12.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 530663.BO | Goyal Associates Ltd | 0.18 | 0.64 | 0.56 |
| 511628.BO | IM+ Capitals Ltd | 0.07 | 0.21 | 0.2 |
| 511688.BO | Mathew Easow Research Securities Ltd | 3.61 | 0.09 | 0.02 |
| 512215.BO | Stephanotis Finance Ltd | 0.06 | 0.84 | 0.8 |
| 531176.BO | Mefcom Capital Markets Ltd | 0.01 | 0.18 | 0.18 |
| 531737.BO | Greencrest Financial Services Ltd | 1.34 | 0.21 | 0.1 |
| 531950.BO | Vertex Securities Ltd | 0.15 | 1.02 | 0.9 |
| 538708.BO | Econo Trade (India) Ltd | 2.26 | 1.28 | 0.45 |
| HBSL.NS | HB Stockholdings Ltd | 0.02 | 2.01 | 1.98 |
| KHANDSE.NS | Khandwala Securities Ltd | 0.04 | 1.15 | 1.11 |
| Low | High | |
| Unlevered beta | 0.35 | 0.65 |
| Relevered beta | 0.4 | 0.75 |
| Adjusted relevered beta | 0.6 | 0.83 |
530663.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 530663.BO:
cost_of_equity (13.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.6) + 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.