538921.BO
Raghuvansh Agrofarms Ltd
Price:  
80.00 
INR
Volume:  
1,250.00
India | Food Products
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538921.BO WACC - Weighted Average Cost of Capital

The WACC of Raghuvansh Agrofarms Ltd (538921.BO) is 13.0%.

The Cost of Equity of Raghuvansh Agrofarms Ltd (538921.BO) is 14.25%.
The Cost of Debt of Raghuvansh Agrofarms Ltd (538921.BO) is 5.00%.

Range Selected
Cost of equity 12.60% - 15.90% 14.25%
Tax rate 14.30% - 15.60% 14.95%
Cost of debt 5.00% - 5.00% 5.00%
WACC 11.5% - 14.4% 13.0%
WACC

538921.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.69 0.87
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.60% 15.90%
Tax rate 14.30% 15.60%
Debt/Equity ratio 0.15 0.15
Cost of debt 5.00% 5.00%
After-tax WACC 11.5% 14.4%
Selected WACC 13.0%

538921.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 538921.BO:

cost_of_equity (14.25%) = 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.