539219.BO
Mauria Udyog Ltd
Price:  
17.51 
INR
Volume:  
427,890.00
India | N/A
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539219.BO WACC - Weighted Average Cost of Capital

The WACC of Mauria Udyog Ltd (539219.BO) is 10.0%.

The Cost of Equity of Mauria Udyog Ltd (539219.BO) is 22.30%.
The Cost of Debt of Mauria Udyog Ltd (539219.BO) is 6.05%.

Range Selected
Cost of equity 18.80% - 25.80% 22.30%
Tax rate 30.00% - 30.00% 30.00%
Cost of debt 4.00% - 8.10% 6.05%
WACC 7.9% - 12.1% 10.0%
WACC

539219.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 1.44 1.93
Additional risk adjustments 0.0% 0.5%
Cost of equity 18.80% 25.80%
Tax rate 30.00% 30.00%
Debt/Equity ratio 2.15 2.15
Cost of debt 4.00% 8.10%
After-tax WACC 7.9% 12.1%
Selected WACC 10.0%

539219.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 539219.BO:

cost_of_equity (22.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.44) + 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.