534060.BO WACC - Weighted Average Cost of Capital
The WACC of Pmc Fincorp Ltd (534060.BO) is 14.4%.
| Range | Selected | |
| Cost of equity | 13.4% - 17.8% | 15.6% |
| Tax rate | 18.9% - 25.0% | 21.95% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 12.5% - 16.4% | 14.4% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.79 | 1.07 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.4% | 17.8% |
| Tax rate | 18.9% | 25.0% |
| Debt/Equity ratio | 0.12 | 0.12 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 12.5% | 16.4% |
| Selected WACC | 14.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 534060.BO | Pmc Fincorp Ltd | 0.12 | 1.37 | 1.26 |
| 501700.BO | Indianivesh Ltd | 2.87 | -0.26 | -0.08 |
| 530341.BO | Mukesh Babu Financial Services Ltd | 0.33 | 1.55 | 1.24 |
| 530499.BO | A K Capital Services Ltd | 4.17 | 0.61 | 0.15 |
| 530579.BO | U Y Fincorp Ltd | 0 | 1.69 | 1.69 |
| 530585.BO | Swastika Investmart Ltd | 0.06 | 0.54 | 0.52 |
| 531033.BO | Regal Entertainement And Consultants Ltd | 0.09 | 0.92 | 0.87 |
| 531216.BO | Comfort Intech Ltd | 0.1 | 1.5 | 1.4 |
| L&TFH.NS | L&T Finance Holdings Ltd | 1.99 | 1.98 | 0.79 |
| RELCAPITAL.NS | Reliance Capital Ltd | 59.04 | 1.77 | 0.04 |
| Low | High | |
| Unlevered beta | 0.68 | 1.02 |
| Relevered beta | 0.69 | 1.1 |
| Adjusted relevered beta | 0.79 | 1.07 |
534060.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 534060.BO:
cost_of_equity (15.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.79) + 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.