538402.BO WACC - Weighted Average Cost of Capital
The WACC of SPS Finquest Ltd (538402.BO) is 12.8%.
| Range | Selected | |
| Cost of equity | 11.1% - 15.0% | 13.05% |
| Tax rate | 9.2% - 29.7% | 19.45% |
| Cost of debt | 7.6% - 10.0% | 8.8% |
| WACC | 10.9% - 14.6% | 12.8% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.51 | 0.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.1% | 15.0% |
| Tax rate | 9.2% | 29.7% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 7.6% | 10.0% |
| After-tax WACC | 10.9% | 14.6% |
| Selected WACC | 12.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 538402.BO | SPS Finquest Ltd | 0.05 | 0.74 | 0.71 |
| 503663.BO | Tilak Ventures Ltd | 0.02 | 0.94 | 0.93 |
| 508969.BO | Sulabh Engineers and Services Ltd | 0.04 | -0.2 | -0.2 |
| 511359.BO | AD- Manum Finance Ltd | 0.14 | 0.79 | 0.7 |
| 526871.BO | Intec Capital Ltd | 1.9 | -0.08 | -0.03 |
| 532057.BO | Abhinav Capital Services Ltd | 0.43 | -1.48 | -1.06 |
| 535566.BO | KIFS Financial Services Ltd | 2.12 | 0.01 | 0 |
| 542774.BO | APM Finvest Ltd | 0.13 | 0.49 | 0.44 |
| TCIFINANCE.NS | Tci Finance Ltd | 0.47 | 0.8 | 0.56 |
| TFL.NS | Transwarranty Finance Ltd | 0.47 | 1.94 | 1.36 |
| Low | High | |
| Unlevered beta | 0.27 | 0.62 |
| Relevered beta | 0.27 | 0.64 |
| Adjusted relevered beta | 0.51 | 0.76 |
538402.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 538402.BO:
cost_of_equity (13.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.51) + 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.