539189.BO WACC - Weighted Average Cost of Capital
The WACC of Adhbhut Infrastructure Ltd (539189.BO) is 9.8%.
| Range | Selected | |
| Cost of equity | 9.8% - 11.7% | 10.75% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.0% - 10.6% | 9.8% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.36 | 0.41 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.8% | 11.7% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 0.15 | 0.15 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.0% | 10.6% |
| Selected WACC | 9.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 539189.BO | Adhbhut Infrastructure Ltd | 0.15 | 3.55 | 3.21 |
| 504378.BO | Nyssa Corporation Ltd | 0.2 | 0.21 | 0.18 |
| 511441.BO | Gujarat Credit Corporation Ltd | 0.22 | -0.22 | -0.19 |
| 511714.BO | Nimbus Projects Ltd | 0.02 | 0.09 | 0.09 |
| 524031.BO | Patidar Buildcon Ltd | 0.51 | 0.98 | 0.72 |
| 526500.BO | Sterling Greenwoods Ltd | 0.79 | 0.2 | 0.13 |
| 526532.BO | Square Four Projects India Ltd | 0.21 | -1.12 | -0.98 |
| 530821.BO | SSPDL Ltd | 3.17 | 0.05 | 0.02 |
| 531574.BO | Vas Infrastructure Ltd (cn) | 9.03 | -0.5 | -0.07 |
| 531583.BO | RAP Media Ltd | 0.16 | 1.01 | 0.91 |
| 531909.BO | Swagruha Infrastructure Ltd | 0 | 0.05 | 0.05 |
| Low | High | |
| Unlevered beta | 0.05 | 0.13 |
| Relevered beta | 0.04 | 0.12 |
| Adjusted relevered beta | 0.36 | 0.41 |
539189.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 539189.BO:
cost_of_equity (10.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.36) + 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.