539400.BO
Mallcom (India) Ltd
Price:  
1,145.00 
INR
Volume:  
1,305.00
India | Commercial Services & Supplies
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539400.BO WACC - Weighted Average Cost of Capital

The WACC of Mallcom (India) Ltd (539400.BO) is 13.9%.

The Cost of Equity of Mallcom (India) Ltd (539400.BO) is 15.00%.
The Cost of Debt of Mallcom (India) Ltd (539400.BO) is 7.60%.

Range Selected
Cost of equity 13.60% - 16.40% 15.00%
Tax rate 30.30% - 33.70% 32.00%
Cost of debt 6.80% - 8.40% 7.60%
WACC 12.6% - 15.2% 13.9%
WACC

539400.BO WACC calculation

Category Low High
Long-term bond rate 7.5% 8.0%
Equity market risk premium 6.9% 7.9%
Adjusted beta 0.88 0.99
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.60% 16.40%
Tax rate 30.30% 33.70%
Debt/Equity ratio 0.13 0.13
Cost of debt 6.80% 8.40%
After-tax WACC 12.6% 15.2%
Selected WACC 13.9%

539400.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 539400.BO:

cost_of_equity (15.00%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (0.88) + 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.