531494.BO WACC - Weighted Average Cost of Capital
The WACC of Navkar Builders Ltd (531494.BO) is 12.9%.
| Range | Selected | |
| Cost of equity | 11.9% - 14.3% | 13.1% |
| Tax rate | 17.6% - 25.9% | 21.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 11.7% - 14.1% | 12.9% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.6 | 0.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.9% | 14.3% |
| Tax rate | 17.6% | 25.9% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 11.7% | 14.1% |
| Selected WACC | 12.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 531494.BO | Navkar Builders Ltd | 0.02 | 0.47 | 0.46 |
| 513528.BO | Glittek Granites Ltd | 0.85 | 0.39 | 0.23 |
| 518017.BO | Bheema Cements Ltd | 3.8 | 0.96 | 0.24 |
| 526315.BO | Divyashakti Granites Ltd | 0.03 | 1.26 | 1.23 |
| 530977.BO | Shri Keshav Cements and Infra Ltd | 0.9 | 0.79 | 0.47 |
| 532323.BO | Shiva Cement Ltd | 1.36 | 1.32 | 0.64 |
| 541634.BO | Raw Edge Industrial Solutions Ltd | 0.92 | -0.05 | -0.03 |
| APCL.NS | Anjani Portland Cement Ltd | 1.04 | 1.16 | 0.64 |
| BURNPUR.NS | Burnpur Cement Ltd | 7.31 | 2.04 | 0.31 |
| ORIENTALTL.NS | Oriental Trimex Ltd | 0.02 | 0.92 | 0.9 |
| Low | High | |
| Unlevered beta | 0.4 | 0.54 |
| Relevered beta | 0.4 | 0.55 |
| Adjusted relevered beta | 0.6 | 0.7 |
531494.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 531494.BO:
cost_of_equity (13.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.6) + 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.