OSWALAGRO.NS WACC - Weighted Average Cost of Capital
The WACC of Oswal Agro Mills Ltd (OSWALAGRO.NS) is 11.9%.
| Range | Selected | |
| Cost of equity | 9.8% - 14.0% | 11.9% |
| Tax rate | 35.6% - 45.4% | 40.5% |
| Cost of debt | 4.0% - 7.5% | 5.75% |
| WACC | 9.8% - 14.0% | 11.9% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.36 | 0.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.8% | 14.0% |
| Tax rate | 35.6% | 45.4% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 7.5% |
| After-tax WACC | 9.8% | 14.0% |
| Selected WACC | 11.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| OSWALAGRO.NS | Oswal Agro Mills Ltd | 0 | 1.37 | 1.37 |
| 503127.BO | Raja Bahadur International Ltd | 1.16 | -1.06 | -0.63 |
| 512048.BO | Luharuka Media & Infra Ltd | 0.01 | 0.49 | 0.49 |
| 526654.BO | Thakkers Developers Ltd | 0.18 | -0.44 | -0.4 |
| 530821.BO | SSPDL Ltd | 3.22 | 0.05 | 0.02 |
| 531909.BO | Swagruha Infrastructure Ltd | 0 | 0.05 | 0.05 |
| 540796.BO | Ratnabhumi Developers Ltd | 1.58 | -0.33 | -0.17 |
| 543218.BO | Suratwwala Business Group Ltd | 0.13 | 1.04 | 0.97 |
| AMJLAND.NS | AMJ Land Holdings Ltd | 0.02 | 0.75 | 0.74 |
| BHAGYAPROP.NS | Bhagyanagar Properties Ltd | 0.16 | 0.54 | 0.5 |
| Low | High | |
| Unlevered beta | 0.04 | 0.49 |
| Relevered beta | 0.04 | 0.49 |
| Adjusted relevered beta | 0.36 | 0.66 |
OSWALAGRO.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 OSWALAGRO.NS:
cost_of_equity (11.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.36) + 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.