537254.BO
RCI Industries & Technologies Ltd
Price:  
5.7 
INR
Volume:  
19,054
India | Trading Companies & Distributors

537254.BO WACC - Weighted Average Cost of Capital

The WACC of RCI Industries & Technologies Ltd (537254.BO) is 9.1%.

The Cost of Equity of RCI Industries & Technologies Ltd (537254.BO) is 63.25%.
The Cost of Debt of RCI Industries & Technologies Ltd (537254.BO) is 7.35%.

RangeSelected
Cost of equity17.3% - 109.2%63.25%
Tax rate0.8% - 8.1%4.45%
Cost of debt7.0% - 7.7%7.35%
WACC7.3% - 10.8%9.1%
WACC

537254.BO WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta1.2510.89
Additional risk adjustments0.0%0.5%
Cost of equity17.3%109.2%
Tax rate0.8%8.1%
Debt/Equity ratio
26.1326.13
Cost of debt7.0%7.7%
After-tax WACC7.3%10.8%
Selected WACC9.1%

537254.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 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.