540492.BO
Starlineps Enterprises Ltd
Price:  
6.80 
INR
Volume:  
323,897.00
India | Distributors
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540492.BO WACC - Weighted Average Cost of Capital

The WACC of Starlineps Enterprises Ltd (540492.BO) is 8.5%.

The Cost of Equity of Starlineps Enterprises Ltd (540492.BO) is 13.30%.
The Cost of Debt of Starlineps Enterprises Ltd (540492.BO) is 5.00%.

Range Selected
Cost of equity 11.70% - 14.90% 13.30%
Tax rate 24.30% - 25.10% 24.70%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.7% - 9.3% 8.5%
WACC

540492.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.58 0.75
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.70% 14.90%
Tax rate 24.30% 25.10%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 7.7% 9.3%
Selected WACC 8.5%

540492.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 540492.BO:

cost_of_equity (13.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.58) + 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.