531727.BO WACC - Weighted Average Cost of Capital
The WACC of Menon Pistons Ltd (531727.BO) is 15.3%.
| Range | Selected | |
| Cost of equity | 14.3% - 17.4% | 15.85% |
| Tax rate | 24.9% - 27.1% | 26% |
| Cost of debt | 7.6% - 11.3% | 9.45% |
| WACC | 13.8% - 16.8% | 15.3% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.9 | 1.02 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.3% | 17.4% |
| Tax rate | 24.9% | 27.1% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 7.6% | 11.3% |
| After-tax WACC | 13.8% | 16.8% |
| Selected WACC | 15.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 531727.BO | Menon Pistons Ltd | 0.06 | 0.83 | 0.8 |
| 500240.BO | Kinetic Engineering Ltd | 0.09 | 1.92 | 1.8 |
| 504786.BO | Investment & Precision Castings Ltd | 0.16 | 0.92 | 0.82 |
| 504908.BO | Duncan Engineering Ltd | 0.01 | 1.02 | 1.01 |
| 532459.BO | Faze Three Autofab Ltd | 0.53 | 1.42 | 1.02 |
| 532933.BO | Porwal Auto Components Ltd | 0.09 | 0.8 | 0.75 |
| 541178.BO | Benara Bearings and Pistons Ltd | 1.77 | 1.4 | 0.61 |
| MENONBE.NS | Menon Bearings Ltd | 0.05 | 1.01 | 0.97 |
| REMSONSIND.NS | Remsons Industries Ltd | 0.14 | 0.87 | 0.79 |
| SINTERCOM.NS | Sintercom India Ltd | 0.09 | 1.31 | 1.23 |
| Low | High | |
| Unlevered beta | 0.81 | 0.99 |
| Relevered beta | 0.85 | 1.03 |
| Adjusted relevered beta | 0.9 | 1.02 |
531727.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 531727.BO:
cost_of_equity (15.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.9) + 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.