CREDITACC.NS WACC - Weighted Average Cost of Capital
The WACC of CreditAccess Grameen Ltd (CREDITACC.NS) is 10.5%.
| Range | Selected | |
| Cost of equity | 17.3% - 20.3% | 18.8% |
| Tax rate | 26.1% - 26.8% | 26.45% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.8% - 11.1% | 10.5% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.26 | 1.34 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 17.3% | 20.3% |
| Tax rate | 26.1% | 26.8% |
| Debt/Equity ratio | 1.23 | 1.23 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.8% | 11.1% |
| Selected WACC | 10.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CREDITACC.NS | CreditAccess Grameen Ltd | 1.23 | 1.51 | 0.8 |
| 511147.BO | Wall Street Finance Ltd | 0.05 | 0.81 | 0.78 |
| 534680.BO | SRG Housing Finance Ltd | 1.18 | 1.77 | 0.95 |
| ARMANFIN.NS | Arman Financial Services Ltd | 1.12 | 1.43 | 0.78 |
| CAPTRUST.NS | Capital Trust Ltd | 0.45 | 1.54 | 1.16 |
| CGCL.NS | Capri Global Capital Ltd | 0.81 | 0.92 | 0.57 |
| INDOSTAR.NS | IndoStar Capital Finance Ltd | 1.66 | 1.44 | 0.65 |
| MASFIN.NS | MAS Financial Services Ltd | 1.42 | 0.72 | 0.35 |
| PAISALO.NS | Paisalo Digital Ltd | 0.94 | 1.4 | 0.83 |
| SPANDANA.NS | Spandana Sphoorty Financial Ltd | 4.66 | 1.79 | 0.4 |
| Low | High | |
| Unlevered beta | 0.73 | 0.79 |
| Relevered beta | 1.39 | 1.51 |
| Adjusted relevered beta | 1.26 | 1.34 |
CREDITACC.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 CREDITACC.NS:
cost_of_equity (18.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.26) + 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.