531688.BO
Prithvi Exchange (India) Ltd
Price:  
166 
INR
Volume:  
4,207
India | Consumer Finance

531688.BO WACC - Weighted Average Cost of Capital

The WACC of Prithvi Exchange (India) Ltd (531688.BO) is 11.8%.

The Cost of Equity of Prithvi Exchange (India) Ltd (531688.BO) is 12.05%.
The Cost of Debt of Prithvi Exchange (India) Ltd (531688.BO) is 7.4%.

RangeSelected
Cost of equity10.7% - 13.4%12.05%
Tax rate26.0% - 27.0%26.5%
Cost of debt7.3% - 7.5%7.4%
WACC10.5% - 13.2%11.8%
WACC

531688.BO WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.460.59
Additional risk adjustments0.0%0.5%
Cost of equity10.7%13.4%
Tax rate26.0%27.0%
Debt/Equity ratio
0.030.03
Cost of debt7.3%7.5%
After-tax WACC10.5%13.2%
Selected WACC11.8%

531688.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 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.