531737.BO WACC - Weighted Average Cost of Capital
The WACC of Greencrest Financial Services Ltd (531737.BO) is 10.0%.
| Range | Selected | |
| Cost of equity | 16.3% - 19.9% | 18.1% |
| Tax rate | 25.7% - 26.1% | 25.9% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.2% - 10.8% | 10.0% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.14 | 1.29 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 16.3% | 19.9% |
| Tax rate | 25.7% | 26.1% |
| Debt/Equity ratio | 1.28 | 1.28 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.2% | 10.8% |
| Selected WACC | 10.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 531737.BO | Greencrest Financial Services Ltd | 1.28 | 0.21 | 0.11 |
| 505576.BO | Goldcrest Corporation Ltd | 0.02 | 1.06 | 1.04 |
| 506105.BO | Stanrose Mafatlal Investments and Finance Ltd | 0.08 | 0.21 | 0.2 |
| 511628.BO | IM+ Capitals Ltd | 0.06 | 0.21 | 0.2 |
| 512215.BO | Stephanotis Finance Ltd | 0.06 | 0.84 | 0.8 |
| 523558.BO | Swiss Military Consumer Goods Ltd | 0 | 0.69 | 0.69 |
| 530663.BO | Goyal Associates Ltd | 0.17 | 0.64 | 0.57 |
| DBSTOCKBRO.NS | DB (International) Stock Brokers Ltd | 0.04 | 0.67 | 0.65 |
| HBSL.NS | HB Stockholdings Ltd | 0.02 | 2.05 | 2.02 |
| KHANDSE.NS | Khandwala Securities Ltd | 0.04 | 1.1 | 1.07 |
| Low | High | |
| Unlevered beta | 0.62 | 0.74 |
| Relevered beta | 1.21 | 1.43 |
| Adjusted relevered beta | 1.14 | 1.29 |
531737.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 531737.BO:
cost_of_equity (18.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.14) + 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.