531680.BO
Mayur Leather Products Ltd
Price:  
6.73 
INR
Volume:  
3,150
India | Textiles, Apparel & Luxury Goods

531680.BO WACC - Weighted Average Cost of Capital

The WACC of Mayur Leather Products Ltd (531680.BO) is 17.2%.

The Cost of Equity of Mayur Leather Products Ltd (531680.BO) is 16.7%.
The Cost of Debt of Mayur Leather Products Ltd (531680.BO) is 18.55%.

RangeSelected
Cost of equity13.5% - 19.9%16.7%
Tax rate3.8% - 6.3%5.05%
Cost of debt10.2% - 26.9%18.55%
WACC11.4% - 22.9%17.2%
WACC

531680.BO WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.81.3
Additional risk adjustments0.0%0.5%
Cost of equity13.5%19.9%
Tax rate3.8%6.3%
Debt/Equity ratio
1.31.3
Cost of debt10.2%26.9%
After-tax WACC11.4%22.9%
Selected WACC17.2%

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.