531638.BO WACC - Weighted Average Cost of Capital
The WACC of Suraj Ltd (531638.BO) is 11.3%.
| Range | Selected | |
| Cost of equity | 9.6% - 13.2% | 11.4% |
| Tax rate | 29.9% - 31.9% | 30.9% |
| Cost of debt | 7.6% - 12.0% | 9.8% |
| WACC | 9.5% - 13.0% | 11.3% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.33 | 0.57 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.6% | 13.2% |
| Tax rate | 29.9% | 31.9% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 7.6% | 12.0% |
| After-tax WACC | 9.5% | 13.0% |
| Selected WACC | 11.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 531638.BO | Suraj Ltd | 0.04 | 0.84 | 0.82 |
| 504646.BO | Bhagwati Autocast Ltd | 0.11 | 0.05 | 0.05 |
| 513361.BO | India Steel Works Ltd | 0.4 | 1.15 | 0.9 |
| 513456.BO | Kanishk Steel Industries Ltd | 0.18 | -0.11 | -0.1 |
| 513532.BO | Pradeep Metals Ltd | 0.12 | 0.91 | 0.84 |
| 526981.BO | Shri Bajrang Alloys Ltd | 0.51 | 1.09 | 0.8 |
| GAL.NS | Gyscoal Alloys Ltd | 0.73 | -1.43 | -0.95 |
| METALFORGE.NS | Metalyst Forgings Ltd | 93.31 | -0.13 | 0 |
| SATHAISPAT.NS | Sathavahana Ispat Ltd | 139.47 | 0.94 | 0.01 |
| SUPREMEENG.NS | Supreme Engineering Ltd | 2.12 | -0.4 | -0.16 |
| Low | High | |
| Unlevered beta | 0 | 0.35 |
| Relevered beta | 0 | 0.36 |
| Adjusted relevered beta | 0.33 | 0.57 |
531638.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 531638.BO:
cost_of_equity (11.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.33) + 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.