538732.BO
Vibrant Global Capital Ltd
Price:  
44.00 
INR
Volume:  
1,810.00
India | Diversified Financial Services
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538732.BO WACC - Weighted Average Cost of Capital

The WACC of Vibrant Global Capital Ltd (538732.BO) is 14.0%.

The Cost of Equity of Vibrant Global Capital Ltd (538732.BO) is 14.55%.
The Cost of Debt of Vibrant Global Capital Ltd (538732.BO) is 12.80%.

Range Selected
Cost of equity 12.30% - 16.80% 14.55%
Tax rate 4.60% - 6.60% 5.60%
Cost of debt 10.20% - 15.40% 12.80%
WACC 11.7% - 16.3% 14.0%
WACC

538732.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.66 0.96
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.30% 16.80%
Tax rate 4.60% 6.60%
Debt/Equity ratio 0.3 0.3
Cost of debt 10.20% 15.40%
After-tax WACC 11.7% 16.3%
Selected WACC 14.0%

538732.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 538732.BO:

cost_of_equity (14.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.66) + 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.