MRO-TEK.NS
MRO-TEK Reality Ltd
Price:  
61.54 
INR
Volume:  
41,412
India | Communications Equipment

MRO-TEK.NS WACC - Weighted Average Cost of Capital

The WACC of MRO-TEK Reality Ltd (MRO-TEK.NS) is 13.3%.

The Cost of Equity of MRO-TEK Reality Ltd (MRO-TEK.NS) is 15.85%.
The Cost of Debt of MRO-TEK Reality Ltd (MRO-TEK.NS) is 11.3%.

RangeSelected
Cost of equity14.0% - 17.7%15.85%
Tax rate3.7% - 5.4%4.55%
Cost of debt10.5% - 12.1%11.3%
WACC12.0% - 14.5%13.3%
WACC

MRO-TEK.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.861.06
Additional risk adjustments0.0%0.5%
Cost of equity14.0%17.7%
Tax rate3.7%5.4%
Debt/Equity ratio
1.021.02
Cost of debt10.5%12.1%
After-tax WACC12.0%14.5%
Selected WACC13.3%

MRO-TEK.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 MRO-TEK.NS:

cost_of_equity (15.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.86) + 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.