The WACC of Super Crop Safe Ltd (530883.BO) is 12.3%.
Range | Selected | |
Cost of equity | 11.1% - 18.4% | 14.75% |
Tax rate | 3.8% - 4.7% | 4.25% |
Cost of debt | 9.0% - 10.5% | 9.75% |
WACC | 10.0% - 14.6% | 12.3% |
Category | Low | High |
Long-term bond rate | 6.9% | 7.4% |
Equity market risk premium | 8.3% | 9.3% |
Adjusted beta | 0.51 | 1.13 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 11.1% | 18.4% |
Tax rate | 3.8% | 4.7% |
Debt/Equity ratio | 0.81 | 0.81 |
Cost of debt | 9.0% | 10.5% |
After-tax WACC | 10.0% | 14.6% |
Selected WACC | 12.3% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
530883.BO | Super Crop Safe Ltd | 0.81 | 1.14 | 0.64 |
524288.BO | Aimco Pesticides Ltd | 0.17 | 1.11 | 0.96 |
524808.BO | Phyto Chem India Ltd | 1.2 | 0.22 | 0.1 |
531862.BO | Bharat Agri Fert & Realty Ltd | 0.32 | 0.14 | 0.1 |
532067.BO | Kilpest India Ltd | 0 | 1.36 | 1.36 |
542123.BO | Phosphate Company Ltd | 0.37 | -0.74 | -0.55 |
AGROPHOS.NS | Agro Phos India Ltd | 0.39 | 1.11 | 0.81 |
KRISHANA.NS | Krishana Phoschem Ltd | 0.14 | 0.8 | 0.71 |
MBAPL.NS | Madhya Bharat Agro Products Ltd | 0.08 | 0.2 | 0.18 |
VIKASPROP.NS | Vikas Proppant & Granite Ltd | 2.7 | 0.07 | 0.02 |
Low | High | |
Unlevered beta | 0.15 | 0.67 |
Relevered beta | 0.27 | 1.19 |
Adjusted relevered beta | 0.51 | 1.13 |
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 530883.BO:
cost_of_equity (14.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.51) + 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.