539220.BO
Mishka Exim Ltd
Price:  
34.5 
INR
Volume:  
24,682
India | Distributors

539220.BO WACC - Weighted Average Cost of Capital

The WACC of Mishka Exim Ltd (539220.BO) is 12.0%.

The Cost of Equity of Mishka Exim Ltd (539220.BO) is 12%.
The Cost of Debt of Mishka Exim Ltd (539220.BO) is 7.5%.

RangeSelected
Cost of equity10.8% - 13.2%12%
Tax rate24.2% - 30.1%27.15%
Cost of debt7.5% - 7.5%7.5%
WACC10.8% - 13.1%12.0%
WACC

539220.BO WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.470.57
Additional risk adjustments0.0%0.5%
Cost of equity10.8%13.2%
Tax rate24.2%30.1%
Debt/Equity ratio
0.010.01
Cost of debt7.5%7.5%
After-tax WACC10.8%13.1%
Selected WACC12.0%

539220.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 539220.BO:

cost_of_equity (12.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.47) + 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.