532874.BO WACC - Weighted Average Cost of Capital
The WACC of Suryachakra Power Corp Ltd (532874.BO) is 5.9%.
| Range | Selected | |
| Cost of equity | 12.7% - 15.4% | 14.05% |
| Tax rate | 30.0% - 31.8% | 30.9% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.6% - 6.1% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 6.9% | 7.9% |
| Adjusted beta | 0.83 | 0.95 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.7% | 15.4% |
| Tax rate | 30.0% | 31.8% |
| Debt/Equity ratio | 3.42 | 3.42 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.6% | 6.1% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 532874.BO | Suryachakra Power Corp Ltd | 3.42 | 0.82 | 0.24 |
| 90.HK | Puxing Energy Ltd | 3.24 | 0.52 | 0.16 |
| EDEN.KL | Eden Inc. Bhd | 0.21 | 0.56 | 0.49 |
| EWC.AX | Energy World Corporation Ltd | 19.54 | 2.97 | 0.2 |
| GIPCL.NS | Gujarat Industries Power Company Ltd | 0.18 | 1.76 | 1.56 |
| JSWENERGY.NS | JSW Energy Ltd | 0.35 | 1.06 | 0.85 |
| NLCINDIA.NS | NLC India Ltd | 0.71 | 1.86 | 1.25 |
| PTC.NS | PTC India Ltd | 0.82 | 1.42 | 0.9 |
| RTNPOWER.NS | RattanIndia Power Ltd | 0.45 | 1.13 | 0.86 |
| SCG.BK | Sahacogen (Chonburi) PCL | 1.83 | 0.35 | 0.15 |
| Low | High | |
| Unlevered beta | 0.39 | 0.85 |
| Relevered beta | 0.75 | 0.93 |
| Adjusted relevered beta | 0.83 | 0.95 |
532874.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 532874.BO:
cost_of_equity (14.05%) = risk_free_rate (7.15%) + equity_risk_premium (7.40%) * adjusted_beta (0.83) + 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.