531680.BO WACC - Weighted Average Cost of Capital
The WACC of Mayur Leather Products Ltd (531680.BO) is 17.2%.
| Range | Selected | |
| Cost of equity | 13.5% - 19.9% | 16.7% |
| Tax rate | 3.8% - 6.3% | 5.05% |
| Cost of debt | 10.2% - 26.9% | 18.55% |
| WACC | 11.4% - 22.9% | 17.2% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.8 | 1.3 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.5% | 19.9% |
| Tax rate | 3.8% | 6.3% |
| Debt/Equity ratio | 1.3 | 1.3 |
| Cost of debt | 10.2% | 26.9% |
| After-tax WACC | 11.4% | 22.9% |
| Selected WACC | 17.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 531680.BO | Mayur Leather Products Ltd | 1.3 | 0.91 | 0.41 |
| 500192.BO | Prag Bosimi Synthetics Ltd | 8.73 | 0.67 | 0.07 |
| 514240.BO | Kush Industries Ltd | 0.82 | -0.66 | -0.37 |
| 516098.BO | Ventura Textiles Ltd | 0.35 | 0.23 | 0.17 |
| 523842.BO | Super Tannery Ltd | 0.76 | 1.17 | 0.69 |
| 526481.BO | Phoenix International Ltd | 1.14 | 1.29 | 0.62 |
| 532441.BO | Rainbow Denim Ltd | 30.34 | 0.68 | 0.02 |
| BATAINDIA.NS | Bata India Ltd | 0.08 | 1.03 | 0.95 |
| LIBERTSHOE.NS | Liberty Shoes Ltd | 0.2 | 1.56 | 1.31 |
| MIRZAINT.NS | Mirza International Ltd | 0.08 | 1.14 | 1.06 |
| Low | High | |
| Unlevered beta | 0.31 | 0.65 |
| Relevered beta | 0.7 | 1.45 |
| Adjusted relevered beta | 0.8 | 1.3 |
531680.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 531680.BO:
cost_of_equity (16.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.8) + 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.