MARALOVER.NS WACC - Weighted Average Cost of Capital
The WACC of Maral Overseas Ltd (MARALOVER.NS) is 16.3%.
| Range | Selected | |
| Cost of equity | 15.2% - 23.0% | 19.1% |
| Tax rate | 14.5% - 20.2% | 17.35% |
| Cost of debt | 8.6% - 26.9% | 17.75% |
| WACC | 10.5% - 22.1% | 16.3% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1 | 1.63 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.2% | 23.0% |
| Tax rate | 14.5% | 20.2% |
| Debt/Equity ratio | 1.47 | 1.47 |
| Cost of debt | 8.6% | 26.9% |
| After-tax WACC | 10.5% | 22.1% |
| Selected WACC | 16.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MARALOVER.NS | Maral Overseas Ltd | 1.47 | 0.59 | 0.26 |
| 500223.BO | JCT Ltd | 1.66 | 0.76 | 0.32 |
| 514470.BO | Winsome Textile Industries Ltd | 1.25 | 0.53 | 0.26 |
| 526817.BO | Cheviot Co Ltd | 0.01 | 1.03 | 1.02 |
| 542351.BO | Gloster Ltd | 0.08 | 1.39 | 1.3 |
| GINNIFILA.NS | Ginni Filaments Ltd | 0.21 | 1.42 | 1.21 |
| PRECOT.NS | Precot Ltd | 0.48 | 1.07 | 0.76 |
| SUMEETINDS.NS | Sumeet Industries Ltd | 1.46 | 0.75 | 0.34 |
| SUPERHOUSE.NS | Super House Ltd | 0.71 | 0.84 | 0.52 |
| VARDMNPOLY.NS | Vardhman Polytex Ltd | 0.15 | 1.41 | 1.25 |
| Low | High | |
| Unlevered beta | 0.45 | 0.86 |
| Relevered beta | 1 | 1.94 |
| Adjusted relevered beta | 1 | 1.63 |
MARALOVER.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 MARALOVER.NS:
cost_of_equity (19.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1) + 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.