HILTON.NS WACC - Weighted Average Cost of Capital
The WACC of Hilton Metal Forging Ltd (HILTON.NS) is 14.8%.
| Range | Selected | |
| Cost of equity | 14.6% - 18.7% | 16.65% |
| Tax rate | 16.0% - 16.7% | 16.35% |
| Cost of debt | 11.3% - 12.1% | 11.7% |
| WACC | 13.2% - 16.4% | 14.8% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.93 | 1.17 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.6% | 18.7% |
| Tax rate | 16.0% | 16.7% |
| Debt/Equity ratio | 0.36 | 0.36 |
| Cost of debt | 11.3% | 12.1% |
| After-tax WACC | 13.2% | 16.4% |
| Selected WACC | 14.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HILTON.NS | Hilton Metal Forging Ltd | 0.36 | 1.75 | 1.34 |
| 505299.BO | KPT Industries Ltd | 0.08 | 0.63 | 0.59 |
| 505750.BO | Josts Engineering Company Ltd | 0.05 | 0.71 | 0.69 |
| 507817.BO | Wires and Fabriks (SA) Ltd | 2.08 | 0.15 | 0.05 |
| 517514.BO | D & H India Ltd | 0.29 | 0.71 | 0.57 |
| 522101.BO | Kilburn Engineering Ltd | 0.03 | 0.96 | 0.94 |
| 526415.BO | OK Play India Ltd | 0.3 | 0.86 | 0.69 |
| LGBFORGE.NS | LGB Forge Ltd | 0.1 | 1.08 | 1 |
| LOKESHMACH.NS | Lokesh Machines Ltd | 0.33 | 1.65 | 1.3 |
| MANUGRAPH.NS | Manugraph India Ltd | 0.11 | 1.78 | 1.62 |
| Low | High | |
| Unlevered beta | 0.69 | 0.96 |
| Relevered beta | 0.9 | 1.25 |
| Adjusted relevered beta | 0.93 | 1.17 |
HILTON.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 HILTON.NS:
cost_of_equity (16.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.93) + 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.