The WACC of Banswara Syntex Ltd (BANSWRAS.NS) is 13.2%.
Range | Selected | |
Cost of equity | 15.8% - 18.5% | 17.15% |
Tax rate | 23.1% - 26.6% | 24.85% |
Cost of debt | 10.6% - 12.1% | 11.35% |
WACC | 12.3% - 14.1% | 13.2% |
Category | Low | High |
Long-term bond rate | 6.9% | 7.4% |
Equity market risk premium | 8.3% | 9.3% |
Adjusted beta | 1.08 | 1.14 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 15.8% | 18.5% |
Tax rate | 23.1% | 26.6% |
Debt/Equity ratio | 0.83 | 0.83 |
Cost of debt | 10.6% | 12.1% |
After-tax WACC | 12.3% | 14.1% |
Selected WACC | 13.2% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
BANSWRAS.NS | Banswara Syntex Ltd | 0.83 | 1.06 | 0.65 |
514036.BO | Loyal Textile Mills Ltd | 0.88 | 1.16 | 0.7 |
AYMSYNTEX.NS | Aym Syntex Ltd | 0.15 | 0.85 | 0.77 |
BASML.NS | Bannari Amman Spinning Mills Ltd | 1.89 | 1.37 | 0.57 |
CENTENKA.NS | Century Enka Ltd | 0.05 | 1.45 | 1.4 |
NAHARINDUS.NS | Nahar Industrial Enterprises Ltd | 1.07 | 1.29 | 0.71 |
NDL.NS | Nandan Denim Ltd | 0.45 | 1.93 | 1.44 |
NITINSPIN.NS | Nitin Spinners Ltd | 0.53 | 1.1 | 0.79 |
SINTEX.NS | Sintex Industries Ltd | 48.4 | 1.12 | 0.03 |
VISHAL.NS | Vishal Fabrics Ltd | 0.73 | 1.14 | 0.74 |
Low | High | |
Unlevered beta | 0.71 | 0.75 |
Relevered beta | 1.12 | 1.21 |
Adjusted relevered beta | 1.08 | 1.14 |
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.