HITECHCORP.NS WACC - Weighted Average Cost of Capital
The WACC of Hitech Corporation Ltd (HITECHCORP.NS) is 15.1%.
| Range | Selected | |
| Cost of equity | 14.9% - 18.1% | 16.5% |
| Tax rate | 25.1% - 26.2% | 25.65% |
| Cost of debt | 10.5% - 14.3% | 12.4% |
| WACC | 13.5% - 16.6% | 15.1% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.96 | 1.1 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.9% | 18.1% |
| Tax rate | 25.1% | 26.2% |
| Debt/Equity ratio | 0.24 | 0.24 |
| Cost of debt | 10.5% | 14.3% |
| After-tax WACC | 13.5% | 16.6% |
| Selected WACC | 15.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HITECHCORP.NS | Hitech Corporation Ltd | 0.24 | 1.51 | 1.28 |
| 515147.BO | Haldyn Glass Ltd | 0.21 | 1.01 | 0.87 |
| 526137.BO | Shetron Ltd | 0.53 | 0.78 | 0.56 |
| 526747.BO | PG Foils Ltd | 0.22 | 1.43 | 1.23 |
| 530315.BO | Hindustan Tin Works Ltd | 0.53 | 1.34 | 0.96 |
| 539354.BO | Polyspin Exports Ltd | 1.93 | 0.51 | 0.21 |
| AMDIND.NS | AMD Industries Ltd | 0.9 | 1.65 | 0.99 |
| KANPRPLA.NS | Kanpur Plastipack Ltd | 0.53 | 0.72 | 0.52 |
| MOLDTKPAC.NS | Mold-Tek Packaging Ltd | 0.07 | 0.73 | 0.7 |
| TPLPLASTEH.NS | TPL Plastech Ltd | 0.05 | 1.55 | 1.5 |
| Low | High | |
| Unlevered beta | 0.8 | 0.97 |
| Relevered beta | 0.94 | 1.15 |
| Adjusted relevered beta | 0.96 | 1.1 |
HITECHCORP.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 HITECHCORP.NS:
cost_of_equity (16.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.96) + 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.