531613.BO WACC - Weighted Average Cost of Capital
The WACC of Meyer Apparel Ltd (531613.BO) is 8.3%.
| Range | Selected | |
| Cost of equity | 10.7% - 12.7% | 11.7% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 7.8% - 8.8% | 8.3% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.46 | 0.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.7% | 12.7% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 7.8% | 8.8% |
| Selected WACC | 8.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 531613.BO | Meyer Apparel Ltd | 0.88 | 0.66 | 0.41 |
| 521206.BO | Samtex Fashions Ltd | 31.64 | 0.31 | 0.01 |
| 523676.BO | Golkunda Diamonds and Jewellery Ltd | 0.29 | 0.15 | 0.12 |
| 526161.BO | Spenta International Ltd | 0.64 | 0.66 | 0.45 |
| 530521.BO | Virat Industries Ltd | 0 | 1.52 | 1.52 |
| 531626.BO | Orosil Smiths India Ltd | 0 | 0.19 | 0.19 |
| 538890.BO | MK Exim (India) Ltd | 0 | 0.1 | 0.1 |
| 540269.BO | Super Fine Knitters Ltd | 0.74 | -0.2 | -0.13 |
| BANARBEADS.NS | Banaras Beads Ltd | 0.11 | 1.18 | 1.09 |
| GOENKA.NS | Goenka Diamond And Jewels Ltd | 6.05 | 0.8 | 0.15 |
| ZENITHEXPO.NS | Zenith Exports Ltd | 0.06 | -0.28 | -0.26 |
| Low | High | |
| Unlevered beta | 0.12 | 0.19 |
| Relevered beta | 0.19 | 0.28 |
| Adjusted relevered beta | 0.46 | 0.52 |
531613.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 531613.BO:
cost_of_equity (11.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.46) + 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.