531539.BO
Rishabh Digha Steel and Allied Products Ltd
Price:  
53.00 
INR
Volume:  
779.00
India | Metals & Mining
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531539.BO WACC - Weighted Average Cost of Capital

The WACC of Rishabh Digha Steel and Allied Products Ltd (531539.BO) is 11.6%.

The Cost of Equity of Rishabh Digha Steel and Allied Products Ltd (531539.BO) is 12.40%.
The Cost of Debt of Rishabh Digha Steel and Allied Products Ltd (531539.BO) is 5.00%.

Range Selected
Cost of equity 11.00% - 13.80% 12.40%
Tax rate 5.40% - 12.60% 9.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 10.3% - 12.8% 11.6%
WACC

531539.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.49 0.64
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.00% 13.80%
Tax rate 5.40% 12.60%
Debt/Equity ratio 0.11 0.11
Cost of debt 5.00% 5.00%
After-tax WACC 10.3% 12.8%
Selected WACC 11.6%

531539.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 531539.BO:

cost_of_equity (12.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.49) + 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.