540147.BO WACC - Weighted Average Cost of Capital
The WACC of Shashijit Infraprojects Ltd (540147.BO) is 14.3%.
| Range | Selected | |
| Cost of equity | 12.1% - 20.1% | 16.1% |
| Tax rate | 18.7% - 25.5% | 22.1% |
| Cost of debt | 7.0% - 28.7% | 17.85% |
| WACC | 7.5% - 21.0% | 14.3% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.63 | 1.31 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.1% | 20.1% |
| Tax rate | 18.7% | 25.5% |
| Debt/Equity ratio | 2.53 | 2.53 |
| Cost of debt | 7.0% | 28.7% |
| After-tax WACC | 7.5% | 21.0% |
| Selected WACC | 14.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 540147.BO | Shashijit Infraprojects Ltd | 1.9 | 0.42 | 0.17 |
| 522231.BO | Conart Engineers Ltd | 0 | 0.72 | 0.72 |
| 531343.BO | India Infraspace Ltd | 1.9 | -0.19 | -0.07 |
| 531540.BO | Maruti Infrastructure Ltd | 0.13 | 0.75 | 0.69 |
| 531900.BO | CCL International Ltd | 0.41 | 1.27 | 0.96 |
| ATLANTA.NS | Atlanta Ltd | 4.28 | 0.68 | 0.15 |
| BRIGHT.NS | Bright Solar Ltd | 0.09 | 1.6 | 1.5 |
| MUKANDENGG.NS | Mukand Engineers Ltd | 3.55 | 1.35 | 0.35 |
| PBAINFRA.NS | PBA Infrastructure Ltd | 21.75 | 0.54 | 0.03 |
| SKIL.NS | Skil Infrastructure Ltd | 37.02 | -0.06 | 0 |
| Low | High | |
| Unlevered beta | 0.16 | 0.49 |
| Relevered beta | 0.45 | 1.46 |
| Adjusted relevered beta | 0.63 | 1.31 |
540147.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 540147.BO:
cost_of_equity (16.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.63) + 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.