532057.BO WACC - Weighted Average Cost of Capital
The WACC of Abhinav Capital Services Ltd (532057.BO) is 9.8%.
| Range | Selected | |
| Cost of equity | 12.6% - 18.9% | 15.75% |
| Tax rate | 20.3% - 23.2% | 21.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.3% - 11.4% | 9.8% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.69 | 1.19 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.6% | 18.9% |
| Tax rate | 20.3% | 23.2% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.3% | 11.4% |
| Selected WACC | 9.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 532057.BO | Abhinav Capital Services Ltd | 0.95 | -1.48 | -0.84 |
| 503663.BO | Tilak Ventures Ltd | 0.06 | 0.94 | 0.9 |
| 508969.BO | Sulabh Engineers and Services Ltd | 0.05 | -0.2 | -0.2 |
| 511359.BO | AD- Manum Finance Ltd | 0.14 | 0.79 | 0.71 |
| 526871.BO | Intec Capital Ltd | 1.36 | -0.08 | -0.04 |
| 530789.BO | Ceejay Finance Ltd | 0.49 | 1.18 | 0.85 |
| 538402.BO | SPS Finquest Ltd | 0.05 | 0.74 | 0.72 |
| 542774.BO | APM Finvest Ltd | 0.13 | 0.49 | 0.45 |
| TCIFINANCE.NS | Tci Finance Ltd | 0.08 | 0.03 | 0.03 |
| TFL.NS | Transwarranty Finance Ltd | 0.46 | 1.77 | 1.3 |
| VIJIFIN.NS | Viji Finance Ltd | 0.39 | 0.14 | 0.11 |
| Low | High | |
| Unlevered beta | 0.11 | 0.71 |
| Relevered beta | 0.54 | 1.28 |
| Adjusted relevered beta | 0.69 | 1.19 |
532057.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 532057.BO:
cost_of_equity (15.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.69) + 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.