541144.BO WACC - Weighted Average Cost of Capital
The WACC of Active Clothing Co Ltd (541144.BO) is 11.0%.
| Range | Selected | |
| Cost of equity | 11.1% - 14.3% | 12.7% |
| Tax rate | 23.7% - 25.6% | 24.65% |
| Cost of debt | 10.5% - 11.3% | 10.9% |
| WACC | 9.9% - 12.1% | 11.0% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.51 | 0.69 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.1% | 14.3% |
| Tax rate | 23.7% | 25.6% |
| Debt/Equity ratio | 0.6 | 0.6 |
| Cost of debt | 10.5% | 11.3% |
| After-tax WACC | 9.9% | 12.1% |
| Selected WACC | 11.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 541144.BO | Active Clothing Co Ltd | 0.6 | 0.33 | 0.23 |
| 523676.BO | Golkunda Diamonds and Jewellery Ltd | 0.28 | 0.15 | 0.12 |
| 530043.BO | Acknit Industries Ltd | 0.82 | 0.8 | 0.5 |
| 532820.BO | E-Land Apparel Ltd | 0.77 | 0.46 | 0.29 |
| 540269.BO | Super Fine Knitters Ltd | 0.75 | -0.2 | -0.13 |
| BANG.NS | Bang Overseas Ltd | 0.38 | 0.1 | 0.08 |
| CELEBRITY.NS | Celebrity Fashions Ltd | 0.93 | 1.16 | 0.68 |
| LOVABLE.NS | Lovable Lingerie Ltd | 0.07 | 1.24 | 1.17 |
| VIPCLOTHNG.NS | VIP Clothing Ltd | 0.22 | 0.96 | 0.83 |
| ZENITHEXPO.NS | Zenith Exports Ltd | 0.04 | -0.05 | -0.05 |
| Low | High | |
| Unlevered beta | 0.18 | 0.37 |
| Relevered beta | 0.27 | 0.54 |
| Adjusted relevered beta | 0.51 | 0.69 |
541144.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 541144.BO:
cost_of_equity (12.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.51) + 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.