531306.BO WACC - Weighted Average Cost of Capital
The WACC of DHP India Ltd (531306.BO) is 16.5%.
| Range | Selected | |
| Cost of equity | 15.5% - 18.0% | 16.75% |
| Tax rate | 17.4% - 20.4% | 18.9% |
| Cost of debt | 7.5% - 7.5% | 7.5% |
| WACC | 15.3% - 17.7% | 16.5% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.04 | 1.09 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.5% | 18.0% |
| Tax rate | 17.4% | 20.4% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 7.5% | 7.5% |
| After-tax WACC | 15.3% | 17.7% |
| Selected WACC | 16.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 531306.BO | DHP India Ltd | 0.02 | 1.05 | 1.02 |
| 505358.BO | Integra Engineering India Ltd | 0.03 | 1.16 | 1.13 |
| 505827.BO | SNL Bearings Ltd | 0 | 1.11 | 1.11 |
| 513709.BO | Shilp Gravures Ltd | 0.01 | 1.21 | 1.2 |
| 522005.BO | Austin Engineering Company Ltd | 0.03 | 1.14 | 1.12 |
| 526073.BO | Galaxy Bearings Ltd | 0.1 | 0.33 | 0.3 |
| 533170.BO | Tamboli Capital Ltd | 0.04 | 1.08 | 1.05 |
| EMKAYTOOLS.NS | Emkay Taps And Cutting Tools Ltd | 0.02 | 0.71 | 0.69 |
| ICEMAKE.NS | Ice Make Refrigeration Ltd | 0.07 | 1.8 | 1.71 |
| LGBFORGE.NS | LGB Forge Ltd | 0.1 | 1.08 | 1 |
| Low | High | |
| Unlevered beta | 1.04 | 1.11 |
| Relevered beta | 1.06 | 1.13 |
| Adjusted relevered beta | 1.04 | 1.09 |
531306.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 531306.BO:
cost_of_equity (16.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.04) + 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.