HOTELRUGBY.NS WACC - Weighted Average Cost of Capital
The WACC of Hotel Rugby Ltd (HOTELRUGBY.NS) is 7.0%.
| Range | Selected | |
| Cost of equity | 8.6% - 12.4% | 10.5% |
| Tax rate | 30.0% - 31.8% | 30.9% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.0% - 7.9% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 7.4% | 7.9% |
| Equity market risk premium | 6.9% | 7.9% |
| Adjusted beta | 0.17 | 0.51 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.6% | 12.4% |
| Tax rate | 30.0% | 31.8% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.0% | 7.9% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HOTELRUGBY.NS | Hotel Rugby Ltd | 0.04 | 0.21 | 0.2 |
| 500016.BO | Aruna Hotels Ltd | 3.27 | 1.15 | 0.35 |
| 532011.BO | Pooja Entertainment And Films Ltd | 0.02 | -0.2 | -0.2 |
| 539174.BO | Helpage Finlease Ltd | 2.34 | 0.36 | 0.14 |
| 539197.BO | Devhari Exports (India) Ltd | 0.41 | -0.56 | -0.43 |
| ANTGRAPHIC.NS | Antarctica Ltd | 0.18 | 0.34 | 0.3 |
| Low | High | |
| Unlevered beta | 0.14 | 0.2 |
| Relevered beta | -0.24 | 0.27 |
| Adjusted relevered beta | 0.17 | 0.51 |
HOTELRUGBY.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 HOTELRUGBY.NS:
cost_of_equity (10.50%) = risk_free_rate (7.65%) + equity_risk_premium (7.40%) * adjusted_beta (0.17) + 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.