MIRCELECTR.NS WACC - Weighted Average Cost of Capital
The WACC of MIRC Electronics Ltd (MIRCELECTR.NS) is 15.7%.
| Range | Selected | |
| Cost of equity | 14.4% - 18.9% | 16.65% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 15.6% - 18.6% | 17.1% |
| WACC | 13.7% - 17.7% | 15.7% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.91 | 1.19 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.4% | 18.9% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 0.26 | 0.26 |
| Cost of debt | 15.6% | 18.6% |
| After-tax WACC | 13.7% | 17.7% |
| Selected WACC | 15.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MIRCELECTR.NS | MIRC Electronics Ltd | 0.26 | 1.66 | 1.41 |
| 032540.KQ | TJ Media Co Ltd | 0.28 | 0.61 | 0.51 |
| 2358.HK | Jiu Rong Holdings Ltd | 17.67 | 0.98 | 0.07 |
| 3882.HK | SKY Light Holdings Ltd | 0.03 | 0.38 | 0.37 |
| 505729.BO | Singer India Ltd | 0 | 1.67 | 1.67 |
| 517236.BO | Calcom Vision Ltd | 0.45 | 1.16 | 0.88 |
| 523449.BO | Sharp India Ltd | 0.86 | 1.77 | 1.1 |
| DIXON.NS | Dixon Technologies (India) Ltd | 0.01 | 1.48 | 1.47 |
| POWERFUL.NS | Powerful Technologies Ltd | 3.81 | 1.08 | 0.3 |
| PULZ.NS | Pulz Electronics Ltd | 0 | 1.08 | 1.08 |
| Low | High | |
| Unlevered beta | 0.73 | 1.09 |
| Relevered beta | 0.87 | 1.28 |
| Adjusted relevered beta | 0.91 | 1.19 |
MIRCELECTR.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 MIRCELECTR.NS:
cost_of_equity (16.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.91) + 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.