538743.BO WACC - Weighted Average Cost of Capital
The WACC of Mudunuru Ltd (538743.BO) is 10.6%.
| Range | Selected | |
| Cost of equity | 10.3% - 12.8% | 11.55% |
| Tax rate | 3.1% - 7.8% | 5.45% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 9.3% - 11.9% | 10.6% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.41 | 0.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.3% | 12.8% |
| Tax rate | 3.1% | 7.8% |
| Debt/Equity ratio | 0.17 | 0.17 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 9.3% | 11.9% |
| Selected WACC | 10.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 538743.BO | Mudunuru Ltd | 0.17 | 1.08 | 0.93 |
| 512093.BO | Cranes Software International Ltd | 8.47 | 1.31 | 0.14 |
| 526544.BO | Scanpoint Geomatics Ltd | 0.54 | 0.44 | 0.29 |
| 530951.BO | Raminfo Ltd | 0.1 | 1.77 | 1.61 |
| 531616.BO | Starcom Information Technology Ltd | 0.58 | -0.03 | -0.02 |
| 532972.BO | Sankhya Infotech Ltd | 2.62 | 0.79 | 0.22 |
| AO1.AX | AssetOwl Ltd | 0.63 | -0.42 | -0.26 |
| INNOVANA.NS | Innovana Thinklabs Ltd | 0.04 | 0.03 | 0.03 |
| SCL.AX | Schrole Group Ltd | 0.01 | -0.12 | -0.11 |
| VISESHINFO.NS | MPS Infotecnics Ltd | 0.24 | 0.52 | 0.42 |
| Low | High | |
| Unlevered beta | 0.1 | 0.25 |
| Relevered beta | 0.12 | 0.28 |
| Adjusted relevered beta | 0.41 | 0.52 |
538743.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 538743.BO:
cost_of_equity (11.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.41) + 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.