540726.BO WACC - Weighted Average Cost of Capital
The WACC of Trident Texofab Ltd (540726.BO) is 11.6%.
| Range | Selected | |
| Cost of equity | 11.0% - 13.5% | 12.25% |
| Tax rate | 14.2% - 20.3% | 17.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 10.4% - 12.7% | 11.6% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.49 | 0.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.0% | 13.5% |
| Tax rate | 14.2% | 20.3% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 10.4% | 12.7% |
| Selected WACC | 11.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 540726.BO | Trident Texofab Ltd | 0.09 | -0.42 | -0.39 |
| 506863.BO | Swadeshi Industries and Leasing Ltd | 0 | 0.34 | 0.34 |
| 530251.BO | Risa International Ltd | 0.15 | -0.14 | -0.12 |
| 531307.BO | RRIL Ltd | 0.15 | 0.84 | 0.75 |
| 535620.BO | Binny Mills Ltd | 2.2 | 1.05 | 0.38 |
| 537785.BO | Race Eco Chain Ltd | 0.01 | 0.4 | 0.39 |
| 542628.BO | Northern Spirits Ltd | 0.5 | 0.87 | 0.62 |
| MITTAL.NS | Mittal Life Style Ltd | 0.06 | 0.69 | 0.66 |
| PENTAGOLD.NS | Penta Gold Ltd | 8.4 | 0.48 | 0.06 |
| Low | High | |
| Unlevered beta | 0.35 | 0.39 |
| Relevered beta | 0.24 | 0.42 |
| Adjusted relevered beta | 0.49 | 0.61 |
540726.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 540726.BO:
cost_of_equity (12.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.49) + 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.