BANSWRAS.NS
Banswara Syntex Ltd
Price:  
147.5 
INR
Volume:  
23,814
India | Textiles, Apparel & Luxury Goods

BANSWRAS.NS WACC - Weighted Average Cost of Capital

The WACC of Banswara Syntex Ltd (BANSWRAS.NS) is 13.2%.

The Cost of Equity of Banswara Syntex Ltd (BANSWRAS.NS) is 17.15%.
The Cost of Debt of Banswara Syntex Ltd (BANSWRAS.NS) is 11.35%.

RangeSelected
Cost of equity15.8% - 18.5%17.15%
Tax rate23.1% - 26.6%24.85%
Cost of debt10.6% - 12.1%11.35%
WACC12.3% - 14.1%13.2%
WACC

BANSWRAS.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta1.081.14
Additional risk adjustments0.0%0.5%
Cost of equity15.8%18.5%
Tax rate23.1%26.6%
Debt/Equity ratio
0.830.83
Cost of debt10.6%12.1%
After-tax WACC12.3%14.1%
Selected WACC13.2%

BANSWRAS.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 BANSWRAS.NS:

cost_of_equity (17.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.08) + 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.