539963.BO WACC - Weighted Average Cost of Capital
The WACC of Zeal Aqua Ltd (539963.BO) is 12.2%.
| Range | Selected | |
| Cost of equity | 13.2% - 17.7% | 15.45% |
| Tax rate | 17.9% - 19.6% | 18.75% |
| Cost of debt | 11.3% - 12.1% | 11.7% |
| WACC | 11.1% - 13.4% | 12.2% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.76 | 1.06 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.2% | 17.7% |
| Tax rate | 17.9% | 19.6% |
| Debt/Equity ratio | 1.17 | 1.17 |
| Cost of debt | 11.3% | 12.1% |
| After-tax WACC | 11.1% | 13.4% |
| Selected WACC | 12.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 539963.BO | Zeal Aqua Ltd | 1.17 | 0.96 | 0.49 |
| 519295.BO | Bambino Agro Industries Ltd | 0.43 | 0.1 | 0.08 |
| 519397.BO | Sharat Industries Ltd | 0.29 | 0.87 | 0.71 |
| 519477.BO | Cian Agro Industries & Infrastructure Ltd | 0.99 | -0.29 | -0.16 |
| 519566.BO | Simran Farms Ltd | 0.64 | 1.74 | 1.15 |
| 530533.BO | Terai Tea Co Ltd | 0.55 | 0.1 | 0.07 |
| DPUM.JK | Dua Putra Utama Makmur Tbk PT | 2.89 | 0.49 | 0.15 |
| DTIL.NS | Dhunseri Tea & Industries Ltd | 1.25 | 0.91 | 0.45 |
| ROSSELLIND.NS | Rossell India Ltd | 0.44 | 0.89 | 0.65 |
| SKMEGGPROD.NS | SKM Egg Products Export India Ltd | 0.18 | 1.26 | 1.1 |
| Low | High | |
| Unlevered beta | 0.33 | 0.56 |
| Relevered beta | 0.64 | 1.09 |
| Adjusted relevered beta | 0.76 | 1.06 |
539963.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 539963.BO:
cost_of_equity (15.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.76) + 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.