539143.BO
Panth Infinity Ltd
Price:  
8.14 
INR
Volume:  
58,945.00
India | Distributors
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539143.BO WACC - Weighted Average Cost of Capital

The WACC of Panth Infinity Ltd (539143.BO) is 7.5%.

The Cost of Equity of Panth Infinity Ltd (539143.BO) is 15.85%.
The Cost of Debt of Panth Infinity Ltd (539143.BO) is 5.00%.

Range Selected
Cost of equity 13.50% - 18.20% 15.85%
Tax rate 6.80% - 13.30% 10.05%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.0% - 8.0% 7.5%
WACC

539143.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.8 1.11
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.50% 18.20%
Tax rate 6.80% 13.30%
Debt/Equity ratio 2.76 2.76
Cost of debt 5.00% 5.00%
After-tax WACC 7.0% 8.0%
Selected WACC 7.5%

539143.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 539143.BO:

cost_of_equity (15.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.8) + 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.