The WACC of Kesar Terminals & Infrastructure Ltd (533289.BO) is 12.4%.
Range | Selected | |
Cost of equity | 16.3% - 21.5% | 18.9% |
Tax rate | 8.5% - 10.9% | 9.7% |
Cost of debt | 4.0% - 10.0% | 7% |
WACC | 9.8% - 15.1% | 12.4% |
Category | Low | High |
Long-term bond rate | 6.9% | 7.4% |
Equity market risk premium | 8.3% | 9.3% |
Adjusted beta | 1.13 | 1.46 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 16.3% | 21.5% |
Tax rate | 8.5% | 10.9% |
Debt/Equity ratio | 1.04 | 1.04 |
Cost of debt | 4.0% | 10.0% |
After-tax WACC | 9.8% | 15.1% |
Selected WACC | 12.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
533289.BO | Kesar Terminals & Infrastructure Ltd | 1.04 | 1.67 | 0.86 |
5PD.SI | Hengyang Petrochemical Logistics Ltd | 0 | -0.77 | -0.77 |
601975.SS | Nanjing Tanker Corp | 0.09 | 0.96 | 0.89 |
AEGISCHEM.NS | Aegis Logistics Ltd | 0.09 | 1.36 | 1.25 |
GESHIP.NS | Great Eastern Shipping Company Ltd | 0.15 | 1.08 | 0.95 |
KOPI.JK | Mitra Energi Persada Tbk PT | 0.5 | -0.01 | 0 |
MTG.VN | MT Gas JSC | 0.11 | 1.25 | 1.14 |
PCG.VN | Petrovietnam Gas City Investment and Development JSC | 0.52 | 0.36 | 0.25 |
QGTS.QA | Qatar Gas Transport Nakilat Co Ltd QPSC | 0.72 | 1.24 | 0.75 |
VL.BK | V L Enterprise PCL | 0.84 | 0.73 | 0.42 |
Low | High | |
Unlevered beta | 0.62 | 0.87 |
Relevered beta | 1.19 | 1.69 |
Adjusted relevered beta | 1.13 | 1.46 |
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 533289.BO:
cost_of_equity (18.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.13) + 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.