The WACC of RCI Industries & Technologies Ltd (537254.BO) is 9.1%.
Range | Selected | |
Cost of equity | 17.3% - 109.2% | 63.25% |
Tax rate | 0.8% - 8.1% | 4.45% |
Cost of debt | 7.0% - 7.7% | 7.35% |
WACC | 7.3% - 10.8% | 9.1% |
Category | Low | High |
Long-term bond rate | 6.9% | 7.4% |
Equity market risk premium | 8.3% | 9.3% |
Adjusted beta | 1.25 | 10.89 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 17.3% | 109.2% |
Tax rate | 0.8% | 8.1% |
Debt/Equity ratio | 26.13 | 26.13 |
Cost of debt | 7.0% | 7.7% |
After-tax WACC | 7.3% | 10.8% |
Selected WACC | 9.1% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
537254.BO | RCI Industries & Technologies Ltd | 26.13 | 1.69 | 0.06 |
500159.BO | Metroglobal Ltd | 0.05 | 0.77 | 0.73 |
511076.BO | Sat Industries Ltd | 0.19 | 0.67 | 0.57 |
511736.BO | Ushdev International Ltd | 71.81 | 0.79 | 0.01 |
513687.BO | Spectra Industries Ltd | 14.86 | 0.41 | 0.03 |
526931.BO | Hariyana Ship Breakers Ltd | 0.2 | 1.49 | 1.24 |
531396.BO | Pagaria Energy Ltd | 0.06 | 0.04 | 0.03 |
539526.BO | Suncare Traders Ltd | 0.24 | -0.05 | -0.04 |
542012.BO | A-1 Acid Ltd | 0.03 | 0.59 | 0.57 |
VINYLINDIA.NS | Vinyl Chemicals India Ltd | 0 | 1.58 | 1.58 |
Low | High | |
Unlevered beta | 0.05 | 0.57 |
Relevered beta | 1.37 | 15.76 |
Adjusted relevered beta | 1.25 | 10.89 |
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 537254.BO:
cost_of_equity (63.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.25) + 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.