537840.BO WACC - Weighted Average Cost of Capital
The WACC of Raunaq Epc International Ltd (537840.BO) is 12.6%.
| Range | Selected | |
| Cost of equity | 11.2% - 15.7% | 13.45% |
| Tax rate | 14.6% - 18.3% | 16.45% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 10.5% - 14.6% | 12.6% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.52 | 0.84 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.2% | 15.7% |
| Tax rate | 14.6% | 18.3% |
| Debt/Equity ratio | 0.1 | 0.1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 10.5% | 14.6% |
| Selected WACC | 12.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 537840.BO | Raunaq Epc International Ltd | 0.1 | 0.63 | 0.58 |
| 522231.BO | Conart Engineers Ltd | 0 | 0.72 | 0.72 |
| 531540.BO | Maruti Infrastructure Ltd | 0.13 | 0.75 | 0.68 |
| 531900.BO | CCL International Ltd | 0.41 | 1.27 | 0.94 |
| 533167.BO | Coromandel Engineering Company Ltd | 0.11 | 1.64 | 1.5 |
| 540147.BO | Shashijit Infraprojects Ltd | 1.9 | 0.42 | 0.16 |
| ATLANTA.NS | Atlanta Ltd | 4.28 | 0.68 | 0.15 |
| BRIGHT.NS | Bright Solar Ltd | 0.09 | 1.6 | 1.49 |
| MUKANDENGG.NS | Mukand Engineers Ltd | 3.55 | 1.35 | 0.34 |
| PBAINFRA.NS | PBA Infrastructure Ltd | 21.75 | 0.54 | 0.03 |
| SKIL.NS | Skil Infrastructure Ltd | 37.02 | -0.06 | 0 |
| Low | High | |
| Unlevered beta | 0.34 | 0.68 |
| Relevered beta | 0.28 | 0.76 |
| Adjusted relevered beta | 0.52 | 0.84 |
537840.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 537840.BO:
cost_of_equity (13.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.52) + 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.