The WACC of Bengal & Assam Company Ltd (533095.BO) is 13.6%.
Range | Selected | |
Cost of equity | 12.1% - 15.7% | 13.9% |
Tax rate | 29.4% - 33.1% | 31.25% |
Cost of debt | 6.1% - 7.8% | 6.95% |
WACC | 11.9% - 15.4% | 13.6% |
Category | Low | High |
Long-term bond rate | 6.9% | 7.4% |
Equity market risk premium | 8.3% | 9.3% |
Adjusted beta | 0.63 | 0.85 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 12.1% | 15.7% |
Tax rate | 29.4% | 33.1% |
Debt/Equity ratio | 0.03 | 0.03 |
Cost of debt | 6.1% | 7.8% |
After-tax WACC | 11.9% | 15.4% |
Selected WACC | 13.6% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
533095.BO | Bengal & Assam Company Ltd | 0.03 | 0.64 | 0.63 |
505343.BO | Monotype India Ltd | 0.53 | 0.23 | 0.17 |
539177.BO | Authum Investment & Infrastructure Ltd | 0.07 | 0.06 | 0.05 |
539875.BO | RSD Finance Ltd | 0.16 | 0.15 | 0.13 |
EDELWEISS.NS | Edelweiss Financial Services Ltd | 1.82 | 1.76 | 0.79 |
IIFLWAM.NS | IIFL Wealth Management Ltd | 0.29 | 0.87 | 0.73 |
NAGREEKCAP.NS | Nagreeka Capital & Infrastructure Ltd | 2.43 | 0.39 | 0.15 |
PFS.NS | PTC India Financial Services Ltd | 1.05 | 1.7 | 0.99 |
PILANIINVS.NS | Pilani Investment And Industries Corporation Ltd | 0.33 | 1.71 | 1.4 |
UTIAMC.NS | UTI Asset Management Company Ltd | 0.01 | 1.41 | 1.4 |
Low | High | |
Unlevered beta | 0.44 | 0.75 |
Relevered beta | 0.45 | 0.78 |
Adjusted relevered beta | 0.63 | 0.85 |
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 533095.BO:
cost_of_equity (13.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.63) + 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.