532820.BO
E-Land Apparel Ltd
Price:  
14.87 
INR
Volume:  
48,474.00
India | Textiles, Apparel & Luxury Goods
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532820.BO WACC - Weighted Average Cost of Capital

The WACC of E-Land Apparel Ltd (532820.BO) is 11.2%.

The Cost of Equity of E-Land Apparel Ltd (532820.BO) is 18.05%.
The Cost of Debt of E-Land Apparel Ltd (532820.BO) is 5.00%.

Range Selected
Cost of equity 15.80% - 20.30% 18.05%
Tax rate 30.00% - 30.00% 30.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 10.1% - 12.4% 11.2%
WACC

532820.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 1.08 1.33
Additional risk adjustments 0.0% 0.5%
Cost of equity 15.80% 20.30%
Tax rate 30.00% 30.00%
Debt/Equity ratio 0.88 0.88
Cost of debt 5.00% 5.00%
After-tax WACC 10.1% 12.4%
Selected WACC 11.2%

532820.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 532820.BO:

cost_of_equity (18.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.08) + 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.