The WACC of Prithvi Exchange (India) Ltd (531688.BO) is 11.8%.
Range | Selected | |
Cost of equity | 10.7% - 13.4% | 12.05% |
Tax rate | 26.0% - 27.0% | 26.5% |
Cost of debt | 7.3% - 7.5% | 7.4% |
WACC | 10.5% - 13.2% | 11.8% |
Category | Low | High |
Long-term bond rate | 6.9% | 7.4% |
Equity market risk premium | 8.3% | 9.3% |
Adjusted beta | 0.46 | 0.59 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 10.7% | 13.4% |
Tax rate | 26.0% | 27.0% |
Debt/Equity ratio | 0.03 | 0.03 |
Cost of debt | 7.3% | 7.5% |
After-tax WACC | 10.5% | 13.2% |
Selected WACC | 11.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
531688.BO | Prithvi Exchange (India) Ltd | 0.03 | 0.68 | 0.66 |
507962.BO | Rajath Finance Ltd | 1.23 | 1.04 | 0.55 |
511355.BO | India Cements Capital Ltd | 1.16 | 0.5 | 0.27 |
531091.BO | United Credit Ltd | 0.01 | -0.53 | -0.53 |
531255.BO | Paragon Finance Ltd | 0.03 | 0.57 | 0.55 |
531327.BO | Charms Industries Ltd | 0.08 | 0.03 | 0.03 |
535667.BO | India Finsec Ltd | 0.46 | -0.43 | -0.32 |
538597.BO | TTI Enterprise Ltd | 0.04 | 1.13 | 1.1 |
538834.BO | Meenakshi Enterprises Ltd | 0.57 | 0.3 | 0.21 |
539016.BO | Neil Industries Ltd | 0.41 | 0.21 | 0.16 |
Low | High | |
Unlevered beta | 0.19 | 0.38 |
Relevered beta | 0.19 | 0.39 |
Adjusted relevered beta | 0.46 | 0.59 |
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 531688.BO:
cost_of_equity (12.05%) = 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.