The WACC of Nitin Spinners Ltd (NITINSPIN.NS) is 12.4%.
Range | Selected | |
Cost of equity | 14.7% - 17.5% | 16.1% |
Tax rate | 25.9% - 29.7% | 27.8% |
Cost of debt | 6.6% - 8.6% | 7.6% |
WACC | 11.3% - 13.5% | 12.4% |
Category | Low | High |
Long-term bond rate | 6.9% | 7.4% |
Equity market risk premium | 8.3% | 9.3% |
Adjusted beta | 0.94 | 1.03 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 14.7% | 17.5% |
Tax rate | 25.9% | 29.7% |
Debt/Equity ratio | 0.53 | 0.53 |
Cost of debt | 6.6% | 8.6% |
After-tax WACC | 11.3% | 13.5% |
Selected WACC | 12.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
NITINSPIN.NS | Nitin Spinners Ltd | 0.53 | 1.1 | 0.79 |
514036.BO | Loyal Textile Mills Ltd | 0.88 | 1.16 | 0.7 |
BANSWRAS.NS | Banswara Syntex Ltd | 0.91 | 0.98 | 0.58 |
BASML.NS | Bannari Amman Spinning Mills Ltd | 1.93 | 1.37 | 0.56 |
CENTENKA.NS | Century Enka Ltd | 0.05 | 1.42 | 1.37 |
NAHARINDUS.NS | Nahar Industrial Enterprises Ltd | 1.11 | 1.29 | 0.7 |
NDL.NS | Nandan Denim Ltd | 0.46 | 1.92 | 1.44 |
SINTEX.NS | Sintex Industries Ltd | 48.4 | 1.12 | 0.03 |
SIYSIL.NS | Siyaram Silk Mills Ltd | 0.08 | 0.81 | 0.77 |
VISHAL.NS | Vishal Fabrics Ltd | 0.73 | 1.14 | 0.74 |
Low | High | |
Unlevered beta | 0.7 | 0.75 |
Relevered beta | 0.91 | 1.04 |
Adjusted relevered beta | 0.94 | 1.03 |
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 NITINSPIN.NS:
cost_of_equity (16.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.94) + 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.