537800.BO WACC - Weighted Average Cost of Capital
The WACC of Mangalam Industrial Finance Ltd (537800.BO) is 10.6%.
| Range | Selected | |
| Cost of equity | 12.6% - 22.0% | 17.3% |
| Tax rate | 16.6% - 26.3% | 21.45% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.4% - 12.8% | 10.6% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.69 | 1.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.6% | 22.0% |
| Tax rate | 16.6% | 26.3% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.4% | 12.8% |
| Selected WACC | 10.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 537800.BO | Mangalam Industrial Finance Ltd | 1.12 | 1.29 | 0.71 |
| 512381.BO | Starteck Finance Ltd | 4.97 | -0.93 | -0.2 |
| 530341.BO | Mukesh Babu Financial Services Ltd | 0.33 | 1.55 | 1.25 |
| 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 |
| 532057.BO | Abhinav Capital Services Ltd | 0.45 | -1.48 | -1.11 |
| 534060.BO | Pmc Fincorp Ltd | 0.12 | 1.37 | 1.26 |
| 535566.BO | KIFS Financial Services Ltd | 2.01 | 0.01 | 0 |
| VIJIFIN.NS | Viji Finance Ltd | 0.4 | 0.01 | 0 |
| Low | High | |
| Unlevered beta | 0.52 | 0.87 |
| Relevered beta | 0.54 | 1.78 |
| Adjusted relevered beta | 0.69 | 1.52 |
537800.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 537800.BO:
cost_of_equity (17.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.69) + 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.