BOMDYEING.NS WACC - Weighted Average Cost of Capital
The WACC of Bombay Dyeing and Mfg Co Ltd (BOMDYEING.NS) is 15.0%.
| Range | Selected | |
| Cost of equity | 13.6% - 16.3% | 14.95% |
| Tax rate | 11.3% - 15.7% | 13.5% |
| Cost of debt | 7.5% - 155.1% | 81.3% |
| WACC | 13.6% - 16.4% | 15.0% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.81 | 0.91 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.6% | 16.3% |
| Tax rate | 11.3% | 15.7% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 7.5% | 155.1% |
| After-tax WACC | 13.6% | 16.4% |
| Selected WACC | 15.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BOMDYEING.NS | Bombay Dyeing and Mfg Co Ltd | 0 | 1.68 | 1.68 |
| HIMATSEIDE.NS | Himatsingka Seide Ltd | 1.52 | 1.86 | 0.81 |
| ICIL.NS | Indo Count Industries Ltd | 0.17 | 1.12 | 0.97 |
| INDORAMA.NS | Indo Rama Synthetics (India) Ltd | 1 | 1.77 | 0.95 |
| JINDWORLD.NS | Jindal Worldwide Ltd | 0.19 | 0.36 | 0.31 |
| NAHARINDUS.NS | Nahar Industrial Enterprises Ltd | 1.11 | 1.27 | 0.65 |
| NAHARSPING.NS | Nahar Spinning Mills Ltd | 1.17 | 1.01 | 0.5 |
| SANGAMIND.NS | Sangam (India) Ltd | 0.51 | 1.95 | 1.35 |
| SINTEX.NS | Sintex Industries Ltd | 48.4 | 1.12 | 0.03 |
| SIYSIL.NS | Siyaram Silk Mills Ltd | 0.08 | 0.81 | 0.76 |
| Low | High | |
| Unlevered beta | 0.71 | 0.86 |
| Relevered beta | 0.72 | 0.87 |
| Adjusted relevered beta | 0.81 | 0.91 |
BOMDYEING.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 BOMDYEING.NS:
cost_of_equity (14.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.81) + 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.