MARSHALL.NS WACC - Weighted Average Cost of Capital
The WACC of Marshall Machines Ltd (MARSHALL.NS) is 9.1%.
| Range | Selected | |
| Cost of equity | 12.2% - 16.6% | 14.4% |
| Tax rate | 24.9% - 26.1% | 25.5% |
| Cost of debt | 7.0% - 7.6% | 7.3% |
| WACC | 8.1% - 10.1% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.64 | 0.94 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.2% | 16.6% |
| Tax rate | 24.9% | 26.1% |
| Debt/Equity ratio | 1.47 | 1.47 |
| Cost of debt | 7.0% | 7.6% |
| After-tax WACC | 8.1% | 10.1% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MARSHALL.NS | Marshall Machines Ltd | 1.47 | 0.4 | 0.19 |
| 505690.BO | Brady And Morris Engineering Co Ltd | 0.03 | -0.5 | -0.49 |
| 507817.BO | Wires and Fabriks (SA) Ltd | 2.08 | 0.15 | 0.06 |
| 522005.BO | Austin Engineering Company Ltd | 0.03 | 1.14 | 1.12 |
| 522267.BO | Veejay Lakshmi Engineering Works Ltd | 1.08 | 0.79 | 0.44 |
| 531888.BO | Rexnord Electronics and Controls Ltd | 0.26 | 0.69 | 0.58 |
| 533170.BO | Tamboli Capital Ltd | 0.04 | 1.08 | 1.05 |
| 539227.BO | LOYAL EQUIPMENTS Ltd | 0.03 | 0.11 | 0.11 |
| NIBL.NS | NRB Industrial Bearings Ltd | 1.82 | 0.56 | 0.24 |
| SOMICONVEY.NS | Somi Conveyor Beltings Ltd | 0.12 | 0.47 | 0.43 |
| Low | High | |
| Unlevered beta | 0.22 | 0.43 |
| Relevered beta | 0.46 | 0.91 |
| Adjusted relevered beta | 0.64 | 0.94 |
MARSHALL.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 MARSHALL.NS:
cost_of_equity (14.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.64) + 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.