537259.BO WACC - Weighted Average Cost of Capital
The WACC of Suyog Telematics Ltd (537259.BO) is 10.8%.
| Range | Selected | |
| Cost of equity | 10.5% - 12.3% | 11.4% |
| Tax rate | 23.0% - 25.2% | 24.1% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 9.9% - 11.8% | 10.8% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.44 | 0.48 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.5% | 12.3% |
| Tax rate | 23.0% | 25.2% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 9.9% | 11.8% |
| Selected WACC | 10.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 537259.BO | Suyog Telematics Ltd | 0.09 | -0.05 | -0.04 |
| 532766.BO | Richa Industries Ltd | 50.09 | 0.2 | 0.01 |
| 8535.HK | Vistar Holdings Ltd | 0.49 | 0.36 | 0.26 |
| AKASH.NS | Akash Infra-Projects Ltd | 2.08 | 0.54 | 0.21 |
| ATLANTA.NS | Atlanta Ltd | 4.28 | 0.68 | 0.16 |
| MANINDS.NS | Man Industries India Ltd | 0.19 | 1.88 | 1.64 |
| SALASAR.NS | Salasar Techno Engineering Ltd | 0.25 | 0.9 | 0.76 |
| SETUINFRA.NS | Setubandhan Infrastructure Ltd | 11.57 | -0.26 | -0.03 |
| SKIPPER.NS | Skipper Ltd | 0.15 | 1.75 | 1.57 |
| VOLTAS.NS | Voltas Ltd | 0.02 | 1.25 | 1.24 |
| Low | High | |
| Unlevered beta | 0.19 | 0.46 |
| Relevered beta | 0.16 | 0.22 |
| Adjusted relevered beta | 0.44 | 0.48 |
537259.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 537259.BO:
cost_of_equity (11.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.44) + 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.