531744.BO
Gini Silk Mills Ltd
Price:  
92.01 
INR
Volume:  
611
India | Textiles, Apparel & Luxury Goods

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 12.1%.
The Cost of Debt of Gini Silk Mills Ltd (531744.BO) is 6.3%.

RangeSelected
Cost of equity9.6% - 14.6%12.1%
Tax rate15.8% - 18.3%17.05%
Cost of debt4.7% - 7.9%6.3%
WACC8.7% - 13.4%11.1%
WACC

531744.BO WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.320.72
Additional risk adjustments0.0%0.5%
Cost of equity9.6%14.6%
Tax rate15.8%18.3%
Debt/Equity ratio
0.170.17
Cost of debt4.7%7.9%
After-tax WACC8.7%13.4%
Selected WACC11.1%

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 (12.10%) = 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.