533289.BO
Kesar Terminals & Infrastructure Ltd
Price:  
99.92 
INR
Volume:  
9,541.00
India | Oil, Gas & Consumable Fuels
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

533289.BO WACC - Weighted Average Cost of Capital

The WACC of Kesar Terminals & Infrastructure Ltd (533289.BO) is 12.6%.

The Cost of Equity of Kesar Terminals & Infrastructure Ltd (533289.BO) is 17.65%.
The Cost of Debt of Kesar Terminals & Infrastructure Ltd (533289.BO) is 7.00%.

Range Selected
Cost of equity 14.80% - 20.50% 17.65%
Tax rate 8.50% - 10.90% 9.70%
Cost of debt 4.00% - 10.00% 7.00%
WACC 9.8% - 15.3% 12.6%
WACC

533289.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.96 1.35
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.80% 20.50%
Tax rate 8.50% 10.90%
Debt/Equity ratio 0.8 0.8
Cost of debt 4.00% 10.00%
After-tax WACC 9.8% 15.3%
Selected WACC 12.6%

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 (17.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.96) + 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.