BANCOINDIA.NS WACC - Weighted Average Cost of Capital
The WACC of Banco Products (India) Ltd (BANCOINDIA.NS) is 16.4%.
| Range | Selected | |
| Cost of equity | 15.4% - 18.3% | 16.85% |
| Tax rate | 24.8% - 27.6% | 26.2% |
| Cost of debt | 7.5% - 14.3% | 10.9% |
| WACC | 14.9% - 17.9% | 16.4% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.03 | 1.12 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.4% | 18.3% |
| Tax rate | 24.8% | 27.6% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 7.5% | 14.3% |
| After-tax WACC | 14.9% | 17.9% |
| Selected WACC | 16.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BANCOINDIA.NS | Banco Products (India) Ltd | 0.05 | 1.52 | 1.46 |
| DYNAMATECH.NS | Dynamatic Technologies Ltd | 0.13 | 1.1 | 1 |
| FIEMIND.NS | Fiem Industries Ltd | 0.01 | 1.21 | 1.21 |
| LUMAXIND.NS | Lumax Industries Ltd | 0.26 | 1.02 | 0.86 |
| LUMAXTECH.NS | Lumax AutoTechnologies Ltd | 0.15 | 1.21 | 1.09 |
| MUNJALAU.NS | Munjal Auto Industries Ltd | 0.33 | 1.25 | 1 |
| PRICOLLTD.NS | Pricol Ltd | 0.01 | 0.85 | 0.84 |
| RICOAUTO.NS | Rico Auto Industries Ltd | 0.68 | 1.86 | 1.23 |
| RML.NS | Rane (Madras) Ltd | 0.53 | 1.82 | 1.3 |
| SSWL.NS | Steel Strips Wheels Ltd | 0.29 | 0.82 | 0.67 |
| Low | High | |
| Unlevered beta | 1 | 1.14 |
| Relevered beta | 1.04 | 1.18 |
| Adjusted relevered beta | 1.03 | 1.12 |
BANCOINDIA.NS'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 BANCOINDIA.NS:
cost_of_equity (16.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.03) + 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.