531169.BO WACC - Weighted Average Cost of Capital
The WACC of SKP Securities Ltd (531169.BO) is 12.5%.
| Range | Selected | |
| Cost of equity | 16.7% - 20.3% | 18.5% |
| Tax rate | 18.6% - 22.7% | 20.65% |
| Cost of debt | 7.5% - 9.0% | 8.25% |
| WACC | 11.4% - 13.7% | 12.5% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.19 | 1.34 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 16.7% | 20.3% |
| Tax rate | 18.6% | 22.7% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 7.5% | 9.0% |
| After-tax WACC | 11.4% | 13.7% |
| Selected WACC | 12.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 531169.BO | SKP Securities Ltd | 0.15 | 0.33 | 0.29 |
| 505576.BO | Goldcrest Corporation Ltd | 0.02 | 1.06 | 1.04 |
| 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 |
| 523558.BO | Swiss Military Consumer Goods Ltd | 0 | 0.69 | 0.69 |
| 531950.BO | Vertex Securities Ltd | 0.15 | 1.02 | 0.91 |
| DBSTOCKBRO.NS | DB (International) Stock Brokers Ltd | 0.04 | 0.76 | 0.73 |
| KHANDSE.NS | Khandwala Securities Ltd | 0.04 | 1.15 | 1.11 |
| ONELIFECAP.NS | Onelife Capital Advisors Ltd | 1.93 | 1.25 | 0.49 |
| STAMPEDE.NS | Stampede Capital Ltd | 0.18 | 1.11 | 0.97 |
| Low | High | |
| Unlevered beta | 0.69 | 0.8 |
| Relevered beta | 1.28 | 1.51 |
| Adjusted relevered beta | 1.19 | 1.34 |
531169.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 531169.BO:
cost_of_equity (18.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.19) + 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.