539963.BO WACC - Weighted Average Cost of Capital
The WACC of Zeal Aqua Ltd (539963.BO) is 14.3%.
| Range | Selected | |
| Cost of equity | 16.4% - 21.9% | 19.15% |
| Tax rate | 14.9% - 17.1% | 16% |
| Cost of debt | 10.5% - 11.3% | 10.9% |
| WACC | 12.8% - 15.8% | 14.3% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.15 | 1.51 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 16.4% | 21.9% |
| Tax rate | 14.9% | 17.1% |
| Debt/Equity ratio | 0.95 | 0.95 |
| Cost of debt | 10.5% | 11.3% |
| After-tax WACC | 12.8% | 15.8% |
| Selected WACC | 14.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 539963.BO | Zeal Aqua Ltd | 0.95 | 0.96 | 0.53 |
| 519287.BO | Modern Dairies Ltd | 0.55 | 0.9 | 0.61 |
| 519397.BO | Sharat Industries Ltd | 0.24 | 0.87 | 0.73 |
| 519566.BO | Simran Farms Ltd | 0.4 | 1.74 | 1.3 |
| 530533.BO | Terai Tea Co Ltd | 0.25 | 0.1 | 0.08 |
| 530959.BO | Diana Tea Co Ltd | 0.69 | 1.59 | 1.01 |
| DTIL.NS | Dhunseri Tea & Industries Ltd | 1.26 | 0.81 | 0.39 |
| ROSSELLIND.NS | Rossell India Ltd | 0.42 | 1.3 | 0.96 |
| SKMEGGPROD.NS | SKM Egg Products Export India Ltd | 0.27 | 1.35 | 1.1 |
| WATERBASE.NS | Waterbase Ltd | 0.12 | 1.34 | 1.21 |
| Low | High | |
| Unlevered beta | 0.68 | 0.98 |
| Relevered beta | 1.22 | 1.76 |
| Adjusted relevered beta | 1.15 | 1.51 |
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 (19.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.15) + 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.