535566.BO WACC - Weighted Average Cost of Capital
The WACC of KIFS Financial Services Ltd (535566.BO) is 9.6%.
| Range | Selected | |
| Cost of equity | 18.7% - 22.7% | 20.7% |
| Tax rate | 25.5% - 25.6% | 25.55% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.9% - 10.2% | 9.6% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.42 | 1.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 18.7% | 22.7% |
| Tax rate | 25.5% | 25.6% |
| Debt/Equity ratio | 1.9 | 1.9 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.9% | 10.2% |
| Selected WACC | 9.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 535566.BO | KIFS Financial Services Ltd | 1.9 | 0.01 | 0 |
| 503663.BO | Tilak Ventures Ltd | 0.06 | 0.94 | 0.91 |
| 511359.BO | AD- Manum Finance Ltd | 0.14 | 0.79 | 0.72 |
| 526871.BO | Intec Capital Ltd | 1.34 | -0.08 | -0.04 |
| 530067.BO | CSL Finance Ltd | 0.42 | 0.76 | 0.58 |
| 530789.BO | Ceejay Finance Ltd | 0.48 | 1.18 | 0.87 |
| 537069.BO | Arnold Holdings Ltd | 1.39 | 0.17 | 0.09 |
| 538402.BO | SPS Finquest Ltd | 0.05 | 0.74 | 0.72 |
| TFCILTD.NS | Tourism Finance Corporation of India Ltd | 0.36 | 1.3 | 1.03 |
| TFL.NS | Transwarranty Finance Ltd | 0.4 | 1.68 | 1.29 |
| Low | High | |
| Unlevered beta | 0.66 | 0.78 |
| Relevered beta | 1.63 | 1.88 |
| Adjusted relevered beta | 1.42 | 1.59 |
535566.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 535566.BO:
cost_of_equity (20.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.42) + 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.