540492.BO
Starlineps Enterprises Ltd
Price:  
6.85 
INR
Volume:  
136,773
India | Distributors

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 13.3%.
The Cost of Debt of Starlineps Enterprises Ltd (540492.BO) is 5%.

RangeSelected
Cost of equity11.7% - 14.9%13.3%
Tax rate24.3% - 25.1%24.7%
Cost of debt5.0% - 5.0%5%
WACC7.7% - 9.3%8.5%
WACC

540492.BO WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.580.75
Additional risk adjustments0.0%0.5%
Cost of equity11.7%14.9%
Tax rate24.3%25.1%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC7.7%9.3%
Selected WACC8.5%

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.