The WACC of Gini Silk Mills Ltd (531744.BO) is 11.1%.
Range | Selected | |
Cost of equity | 9.6% - 14.6% | 12.1% |
Tax rate | 15.8% - 18.3% | 17.05% |
Cost of debt | 4.7% - 7.9% | 6.3% |
WACC | 8.7% - 13.4% | 11.1% |
Category | Low | High |
Long-term bond rate | 6.9% | 7.4% |
Equity market risk premium | 8.3% | 9.3% |
Adjusted beta | 0.32 | 0.72 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 9.6% | 14.6% |
Tax rate | 15.8% | 18.3% |
Debt/Equity ratio | 0.17 | 0.17 |
Cost of debt | 4.7% | 7.9% |
After-tax WACC | 8.7% | 13.4% |
Selected WACC | 11.1% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
531744.BO | Gini Silk Mills Ltd | 0.17 | -0.13 | -0.11 |
514010.BO | Himachal Fibres Ltd | 0.04 | 0.72 | 0.7 |
514266.BO | Zenith Fibres Ltd | 0.01 | 0.79 | 0.79 |
521242.BO | Kandagiri Spinning Millis Ltd | 1.16 | -0.52 | -0.26 |
526851.BO | Arex Industries Ltd | 0.18 | 0.45 | 0.39 |
531411.BO | Tuni Textile Mills Ltd | 0.68 | -0.03 | -0.02 |
542019.BO | Shubham Polyspin Ltd | 0.36 | 0.89 | 0.69 |
EUROTEXIND.NS | Eurotex Industries and Exports Ltd | 3.24 | -1.29 | -0.35 |
SOMATEX.NS | Soma Textiles & Industries Ltd | 0.01 | 1.02 | 1.01 |
Low | High | |
Unlevered beta | 0.06 | 0.63 |
Relevered beta | -0.01 | 0.58 |
Adjusted relevered beta | 0.32 | 0.72 |
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.