539398.BO WACC - Weighted Average Cost of Capital
The WACC of Vishal Bearings Ltd (539398.BO) is 13.1%.
| Range | Selected | |
| Cost of equity | 11.8% - 15.6% | 13.7% |
| Tax rate | 29.5% - 32.7% | 31.1% |
| Cost of debt | 8.3% - 26.9% | 17.6% |
| WACC | 9.6% - 16.5% | 13.1% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.59 | 0.84 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.8% | 15.6% |
| Tax rate | 29.5% | 32.7% |
| Debt/Equity ratio | 0.56 | 0.56 |
| Cost of debt | 8.3% | 26.9% |
| After-tax WACC | 9.6% | 16.5% |
| Selected WACC | 13.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 539398.BO | Vishal Bearings Ltd | 0.56 | 3.55 | 2.55 |
| 505690.BO | Brady And Morris Engineering Co Ltd | 0.03 | -0.5 | -0.49 |
| 513709.BO | Shilp Gravures Ltd | 0.03 | 1.21 | 1.18 |
| 522267.BO | Veejay Lakshmi Engineering Works Ltd | 0.96 | 0.79 | 0.47 |
| 526073.BO | Galaxy Bearings Ltd | 0.05 | 0.33 | 0.32 |
| 531888.BO | Rexnord Electronics and Controls Ltd | 0.11 | 0.69 | 0.64 |
| 533170.BO | Tamboli Capital Ltd | 0.02 | 1.08 | 1.07 |
| 539227.BO | LOYAL EQUIPMENTS Ltd | 0.04 | 0.11 | 0.11 |
| MARSHALL.NS | Marshall Machines Ltd | 1.45 | 0.3 | 0.15 |
| NIBL.NS | NRB Industrial Bearings Ltd | 1.84 | 0.5 | 0.22 |
| SOMICONVEY.NS | Somi Conveyor Beltings Ltd | 0.07 | 0.74 | 0.7 |
| Low | High | |
| Unlevered beta | 0.32 | 0.64 |
| Relevered beta | 0.39 | 0.76 |
| Adjusted relevered beta | 0.59 | 0.84 |
539398.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 539398.BO:
cost_of_equity (13.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.59) + 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.