CREST.NS WACC - Weighted Average Cost of Capital
The WACC of Crest Ventures Ltd (CREST.NS) is 13.6%.
| Range | Selected | |
| Cost of equity | 13.2% - 17.7% | 15.45% |
| Tax rate | 22.9% - 27.2% | 25.05% |
| Cost of debt | 4.0% - 7.5% | 5.75% |
| WACC | 11.6% - 15.7% | 13.6% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.76 | 1.06 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.2% | 17.7% |
| Tax rate | 22.9% | 27.2% |
| Debt/Equity ratio | 0.2 | 0.2 |
| Cost of debt | 4.0% | 7.5% |
| After-tax WACC | 11.6% | 15.7% |
| Selected WACC | 13.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CREST.NS | Crest Ventures Ltd | 0.2 | 1.95 | 1.7 |
| 511724.BO | Baid Leasing and Finance Co Ltd | 0.44 | 0.07 | 0.05 |
| 512381.BO | Starteck Finance Ltd | 4.97 | -0.93 | -0.2 |
| 530067.BO | CSL Finance Ltd | 0.42 | 0.76 | 0.57 |
| 530341.BO | Mukesh Babu Financial Services Ltd | 0.33 | 1.55 | 1.24 |
| 530579.BO | U Y Fincorp Ltd | 0 | 1.69 | 1.69 |
| 530585.BO | Swastika Investmart Ltd | 0.06 | 0.54 | 0.52 |
| 531216.BO | Comfort Intech Ltd | 0.1 | 1.5 | 1.4 |
| 537069.BO | Arnold Holdings Ltd | 0.92 | 0.17 | 0.1 |
| BAJAJHLDNG.NS | Bajaj Holdings and Investment Ltd | 0 | 0.75 | 0.75 |
| Low | High | |
| Unlevered beta | 0.55 | 0.95 |
| Relevered beta | 0.64 | 1.09 |
| Adjusted relevered beta | 0.76 | 1.06 |
CREST.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 CREST.NS:
cost_of_equity (15.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.76) + 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.