532329.BO WACC - Weighted Average Cost of Capital
The WACC of Danlaw Technologies India Ltd (532329.BO) is 14.5%.
| Range | Selected | |
| Cost of equity | 13.6% - 16.7% | 15.15% |
| Tax rate | 25.9% - 28.0% | 26.95% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 13.0% - 15.9% | 14.5% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.81 | 0.95 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.6% | 16.7% |
| Tax rate | 25.9% | 28.0% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 13.0% | 15.9% |
| Selected WACC | 14.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 532329.BO | Danlaw Technologies India Ltd | 0.06 | 1.2 | 1.15 |
| 517429.BO | Athena Global Technologies Ltd | 0.7 | 1.29 | 0.85 |
| 526433.BO | ASM Technologies Ltd | 0.03 | 0.64 | 0.63 |
| 538713.BO | Atishay Ltd | 0.03 | 0.96 | 0.95 |
| 538922.BO | COSYN Ltd | 0 | 1.27 | 1.27 |
| CALSOFT.NS | California Software Company Ltd | 0.09 | 0.1 | 0.09 |
| DEVIT.NS | DEV Information Technology Ltd | 0.07 | 1.34 | 1.27 |
| MELSTAR.NS | Melstar Information Technologies Ltd | 0.47 | 0.3 | 0.22 |
| PALREDTEC.NS | Palred Technologies Ltd | 0.99 | 1.25 | 0.72 |
| Low | High | |
| Unlevered beta | 0.75 | 0.93 |
| Relevered beta | 0.72 | 0.93 |
| Adjusted relevered beta | 0.81 | 0.95 |
532329.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 532329.BO:
cost_of_equity (15.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.81) + 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.