531744.BO WACC - Weighted Average Cost of Capital

The WACC of Gini Silk Mills Ltd (531744.BO) is 11.1%.

The Cost of Equity of Gini Silk Mills Ltd (531744.BO) is 12.05%.

The Cost of Debt of Gini Silk Mills Ltd (531744.BO) is 6.30%.

	Range	Selected
Cost of equity	9.60% - 14.50%	12.05%
Tax rate	15.80% - 18.30%	17.05%
Cost of debt	4.70% - 7.90%	6.30%
WACC	8.8% - 13.4%	11.1%

WACC

531744.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.32	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	14.50%

Tax rate	15.80%	18.30%
Debt/Equity ratio	0.16	0.16
Cost of debt	4.70%	7.90%

After-tax WACC	8.8%	13.4%


Selected WACC	11.1%

531744.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 531744.BO:

cost_of_equity (12.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.32) + 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.