ISMTLTD.NS WACC - Weighted Average Cost of Capital
The WACC of ISMT Ltd (ISMTLTD.NS) is 16.6%.
| Range | Selected | |
| Cost of equity | 15.8% - 18.3% | 17.05% |
| Tax rate | 3.7% - 17.4% | 10.55% |
| Cost of debt | 5.9% - 7.5% | 6.7% |
| WACC | 15.3% - 17.8% | 16.6% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.07 | 1.13 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.8% | 18.3% |
| Tax rate | 3.7% | 17.4% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 5.9% | 7.5% |
| After-tax WACC | 15.3% | 17.8% |
| Selected WACC | 16.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ISMTLTD.NS | ISMT Ltd | 0.05 | 1.14 | 1.09 |
| GALLISPAT.NS | Gallantt Ispat Ltd | 0.18 | 1.09 | 0.94 |
| GOODLUCK.NS | Goodluck India Ltd | 0.23 | 1.63 | 1.34 |
| HITECH.NS | Hi-Tech Pipes Ltd | 0.21 | 1.67 | 1.39 |
| IMFA.NS | Indian Metals and Ferro Alloys Ltd | 0.05 | 1.07 | 1.02 |
| KAMDHENU.NS | Kamdhenu Ltd | 0 | 1.45 | 1.45 |
| KSL.NS | Kalyani Steels Ltd | 0.17 | 1.14 | 0.99 |
| MSPL.NS | MSP Steel & Power Ltd | 0.49 | 1.76 | 1.2 |
| NATNLSTEEL.NS | National Steel and Agro Industries Ltd | 87.46 | -1.58 | -0.02 |
| SRIPIPES.NS | Srikalahasthi Pipes Ltd | 0.32 | 1.43 | 1.1 |
| Low | High | |
| Unlevered beta | 1.06 | 1.14 |
| Relevered beta | 1.1 | 1.19 |
| Adjusted relevered beta | 1.07 | 1.13 |
ISMTLTD.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 ISMTLTD.NS:
cost_of_equity (17.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.07) + 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.