The WACC of Asit C Mehta Financial Services Ltd (530723.BO) is 14.1%.
Range | Selected | |
Cost of equity | 10.4% - 14.9% | 12.65% |
Tax rate | 10.0% - 16.8% | 13.4% |
Cost of debt | 9.6% - 26.9% | 18.25% |
WACC | 9.5% - 18.7% | 14.1% |
Category | Low | High |
Long-term bond rate | 6.9% | 7.4% |
Equity market risk premium | 8.3% | 9.3% |
Adjusted beta | 0.43 | 0.76 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 10.4% | 14.9% |
Tax rate | 10.0% | 16.8% |
Debt/Equity ratio | 1.03 | 1.03 |
Cost of debt | 9.6% | 26.9% |
After-tax WACC | 9.5% | 18.7% |
Selected WACC | 14.1% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
530723.BO | Asit C Mehta Financial Services Ltd | 1.03 | -0.14 | -0.07 |
507864.BO | Pioneer Investcorp Ltd | 1.35 | 0.1 | 0.04 |
511557.BO | Pro Fin Capital Services Ltd | 2.45 | -0.19 | -0.06 |
511628.BO | IM+ Capitals Ltd | 0.06 | 0.21 | 0.2 |
511688.BO | Mathew Easow Research Securities Ltd | 3.59 | 0.09 | 0.02 |
531737.BO | Greencrest Financial Services Ltd | 1.28 | 0.21 | 0.1 |
531861.BO | Joindre Capital Services Ltd | 0.22 | 0.64 | 0.53 |
534691.BO | Comfort Commotrade Ltd | 0.22 | 1.43 | 1.19 |
STAMPEDE.NS | Stampede Capital Ltd | 0.18 | 1.11 | 0.95 |
STEELCITY.NS | Steel City Securities Ltd | 0.01 | 0.91 | 0.9 |
Low | High | |
Unlevered beta | 0.08 | 0.33 |
Relevered beta | 0.15 | 0.64 |
Adjusted relevered beta | 0.43 | 0.76 |
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 530723.BO:
cost_of_equity (12.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.43) + 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.