539518.BO WACC - Weighted Average Cost of Capital

The WACC of Uday Jewellery Industries Ltd (539518.BO) is 11.1%.

The Cost of Equity of Uday Jewellery Industries Ltd (539518.BO) is 11.50%.

The Cost of Debt of Uday Jewellery Industries Ltd (539518.BO) is 6.95%.

	Range	Selected
Cost of equity	10.30% - 12.70%	11.50%
Tax rate	26.00% - 26.30%	26.15%
Cost of debt	6.30% - 7.60%	6.95%
WACC	9.9% - 12.3%	11.1%

WACC

539518.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.41	0.52

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.30%	12.70%

Tax rate	26.00%	26.30%
Debt/Equity ratio	0.07	0.07
Cost of debt	6.30%	7.60%

After-tax WACC	9.9%	12.3%


Selected WACC	11.1%

539518.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 539518.BO:

cost_of_equity (11.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.41) + 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.