531396.BO
Pagaria Energy Ltd
Price:  
8.03 
INR
Volume:  
670
India | Trading Companies & Distributors

531396.BO WACC - Weighted Average Cost of Capital

The WACC of Pagaria Energy Ltd (531396.BO) is 10.8%.

The Cost of Equity of Pagaria Energy Ltd (531396.BO) is 11.25%.
The Cost of Debt of Pagaria Energy Ltd (531396.BO) is 5%.

RangeSelected
Cost of equity10.3% - 12.2%11.25%
Tax rate29.8% - 32.8%31.3%
Cost of debt5.0% - 5.0%5%
WACC9.9% - 11.7%10.8%
WACC

531396.BO WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.410.47
Additional risk adjustments0.0%0.5%
Cost of equity10.3%12.2%
Tax rate29.8%32.8%
Debt/Equity ratio
0.060.06
Cost of debt5.0%5.0%
After-tax WACC9.9%11.7%
Selected WACC10.8%

531396.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 531396.BO:

cost_of_equity (11.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.41) + 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.