533289.BO
Kesar Terminals & Infrastructure Ltd
Price:  
98.1 
INR
Volume:  
7,254
India | Oil, Gas & Consumable Fuels

533289.BO WACC - Weighted Average Cost of Capital

The WACC of Kesar Terminals & Infrastructure Ltd (533289.BO) is 12.4%.

The Cost of Equity of Kesar Terminals & Infrastructure Ltd (533289.BO) is 18.9%.
The Cost of Debt of Kesar Terminals & Infrastructure Ltd (533289.BO) is 7%.

RangeSelected
Cost of equity16.3% - 21.5%18.9%
Tax rate8.5% - 10.9%9.7%
Cost of debt4.0% - 10.0%7%
WACC9.8% - 15.1%12.4%
WACC

533289.BO WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta1.131.46
Additional risk adjustments0.0%0.5%
Cost of equity16.3%21.5%
Tax rate8.5%10.9%
Debt/Equity ratio
1.041.04
Cost of debt4.0%10.0%
After-tax WACC9.8%15.1%
Selected WACC12.4%

533289.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 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.