The WACC of Oriental Trimex Ltd (ORIENTALTL.NS) is 13.5%.
Range | Selected | |
Cost of equity | 11.9% - 14.2% | 13.05% |
Tax rate | 13.9% - 17.3% | 15.6% |
Cost of debt | 7.0% - 39.7% | 23.35% |
WACC | 11.5% - 15.5% | 13.5% |
Category | Low | High |
Long-term bond rate | 6.9% | 7.4% |
Equity market risk premium | 8.3% | 9.3% |
Adjusted beta | 0.61 | 0.68 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 11.9% | 14.2% |
Tax rate | 13.9% | 17.3% |
Debt/Equity ratio | 0.07 | 0.07 |
Cost of debt | 7.0% | 39.7% |
After-tax WACC | 11.5% | 15.5% |
Selected WACC | 13.5% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
ORIENTALTL.NS | Oriental Trimex Ltd | 0.07 | 1.13 | 1.06 |
513528.BO | Glittek Granites Ltd | 1.37 | 0.39 | 0.18 |
518017.BO | Bheema Cements Ltd | 3.79 | 0.96 | 0.23 |
526315.BO | Divyashakti Granites Ltd | 0.06 | 1.26 | 1.2 |
530977.BO | Shri Keshav Cements and Infra Ltd | 0.7 | 0.79 | 0.5 |
531494.BO | Navkar Builders Ltd | 0.04 | 0.47 | 0.45 |
541634.BO | Raw Edge Industrial Solutions Ltd | 0.86 | -0.05 | -0.03 |
BURNPUR.NS | Burnpur Cement Ltd | 7.31 | 2.04 | 0.29 |
KAKATCEM.NS | Kakatiya Cement Sugar and Industries Ltd | 0.76 | 0.86 | 0.53 |
VISAKAIND.NS | Visaka Industries Ltd | 0.84 | 0.82 | 0.48 |
Low | High | |
Unlevered beta | 0.39 | 0.49 |
Relevered beta | 0.42 | 0.52 |
Adjusted relevered beta | 0.61 | 0.68 |
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 ORIENTALTL.NS:
cost_of_equity (13.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.61) + 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.