530723.BO
Asit C Mehta Financial Services Ltd
Price:  
109 
INR
Volume:  
566
India | Capital Markets

530723.BO WACC - Weighted Average Cost of Capital

The WACC of Asit C Mehta Financial Services Ltd (530723.BO) is 14.1%.

The Cost of Equity of Asit C Mehta Financial Services Ltd (530723.BO) is 12.65%.
The Cost of Debt of Asit C Mehta Financial Services Ltd (530723.BO) is 18.25%.

RangeSelected
Cost of equity10.4% - 14.9%12.65%
Tax rate10.0% - 16.8%13.4%
Cost of debt9.6% - 26.9%18.25%
WACC9.5% - 18.7%14.1%
WACC

530723.BO WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.430.76
Additional risk adjustments0.0%0.5%
Cost of equity10.4%14.9%
Tax rate10.0%16.8%
Debt/Equity ratio
1.031.03
Cost of debt9.6%26.9%
After-tax WACC9.5%18.7%
Selected WACC14.1%

530723.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 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.