532350.BO WACC - Weighted Average Cost of Capital
The WACC of Padmalaya Telefilms Ltd (532350.BO) is 14.6%.
| Range | Selected | |
| Cost of equity | 14.1% - 16.7% | 15.4% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 13.4% - 15.8% | 14.6% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.87 | 0.95 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.1% | 16.7% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 13.4% | 15.8% |
| Selected WACC | 14.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 532350.BO | Padmalaya Telefilms Ltd | 0.08 | 1 | 0.94 |
| 521062.BO | Perfect-Octave Media Projects Ltd | 0.24 | 0.4 | 0.34 |
| 523277.BO | GV Films Ltd | 0.28 | 0.92 | 0.77 |
| 531925.BO | 52 Weeks Entertainment Ltd | 0.65 | 1.11 | 0.77 |
| 532092.BO | Sagar Productions Ltd | 0.02 | 0.61 | 0.6 |
| BALAJITELE.NS | Balaji Telefilms Ltd | 0.07 | 1.43 | 1.36 |
| CREATIVEYE.NS | Creative Eye Ltd | 0.34 | 1.25 | 1.01 |
| PNC.NS | Pritish Nandy Communications Ltd | 0.06 | 1.44 | 1.39 |
| RADAAN.NS | Radaan Media Works India Ltd | 1.29 | 1.04 | 0.55 |
| SABTN.NS | Sri Adhikari Brothers Television Network Ltd | 6.99 | 1.1 | 0.19 |
| Low | High | |
| Unlevered beta | 0.7 | 0.84 |
| Relevered beta | 0.81 | 0.93 |
| Adjusted relevered beta | 0.87 | 0.95 |
532350.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 532350.BO:
cost_of_equity (15.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.87) + 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.