541967.BO WACC - Weighted Average Cost of Capital
The WACC of Sky Gold Ltd (541967.BO) is 11.7%.
| Range | Selected | |
| Cost of equity | 11.5% - 14.7% | 13.1% |
| Tax rate | 22.5% - 26.5% | 24.5% |
| Cost of debt | 10.2% - 10.7% | 10.45% |
| WACC | 10.6% - 12.8% | 11.7% |
| Category | Low | High |
| Long-term bond rate | 7.4% | 7.9% |
| Equity market risk premium | 6.9% | 7.9% |
| Adjusted beta | 0.59 | 0.79 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.5% | 14.7% |
| Tax rate | 22.5% | 26.5% |
| Debt/Equity ratio | 0.38 | 0.38 |
| Cost of debt | 10.2% | 10.7% |
| After-tax WACC | 10.6% | 12.8% |
| Selected WACC | 11.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 541967.BO | Sky Gold Ltd | 0.38 | 0.93 | 0.72 |
| 526365.BO | Swarnsarita Gems Ltd | 1.37 | 1.07 | 0.52 |
| 530043.BO | Acknit Industries Ltd | 0.63 | 0.8 | 0.54 |
| 532820.BO | E-Land Apparel Ltd | 0.57 | 0.46 | 0.32 |
| 540936.BO | Gautam Gems Ltd | 0.2 | -0.93 | -0.8 |
| 541144.BO | Active Clothing Co Ltd | 0.4 | 0.33 | 0.25 |
| AARVEEDEN.NS | Aarvee Denims and Exports Ltd | 0.75 | -0.22 | -0.14 |
| BIL.NS | Bhartiya International Ltd | 0.45 | 0.55 | 0.41 |
| KDDL.NS | KDDL Ltd | 0.07 | 1.11 | 1.05 |
| SPAL.NS | S. P. Apparels Ltd | 0.18 | 0.73 | 0.64 |
| Low | High | |
| Unlevered beta | 0.38 | 0.53 |
| Relevered beta | 0.39 | 0.69 |
| Adjusted relevered beta | 0.59 | 0.79 |
541967.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 541967.BO:
cost_of_equity (13.10%) = risk_free_rate (7.65%) + equity_risk_premium (7.40%) * adjusted_beta (0.59) + 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.