PITTIENG.NS WACC - Weighted Average Cost of Capital
The WACC of Pitti Engineering Ltd (PITTIENG.NS) is 14.9%.
| Range | Selected | |
| Cost of equity | 14.6% - 17.3% | 15.95% |
| Tax rate | 25.2% - 25.8% | 25.5% |
| Cost of debt | 9.1% - 15.2% | 12.15% |
| WACC | 13.4% - 16.4% | 14.9% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.93 | 1.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.6% | 17.3% |
| Tax rate | 25.2% | 25.8% |
| Debt/Equity ratio | 0.17 | 0.17 |
| Cost of debt | 9.1% | 15.2% |
| After-tax WACC | 13.4% | 16.4% |
| Selected WACC | 14.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PITTIENG.NS | Pitti Engineering Ltd | 0.17 | 0.91 | 0.8 |
| 539984.BO | Hindusthan Urban Infrastructure Ltd | 1.14 | 1.44 | 0.78 |
| 540795.BO | Dynamic Cables Ltd | 0.23 | 1.34 | 1.14 |
| BHAGYANGR.NS | Bhagyanagar India Ltd | 1.03 | 1.29 | 0.73 |
| CMICABLES.NS | CMI Ltd | 76.91 | 0.09 | 0 |
| CORDSCABLE.NS | Cords Cable Industries Ltd | 0.43 | 1.75 | 1.33 |
| NIPPOBATRY.NS | Indo National Ltd | 0.42 | 1.13 | 0.86 |
| PARACABLES.NS | Paramount Communications Ltd | 0.02 | 1.76 | 1.74 |
| SALZERELEC.NS | Salzer Electronics Ltd | 0.21 | 1.11 | 0.97 |
| TRIL.NS | Transformers and Rectifiers (India) Ltd | 0.02 | 0.04 | 0.04 |
| Low | High | |
| Unlevered beta | 0.79 | 0.9 |
| Relevered beta | 0.9 | 1.01 |
| Adjusted relevered beta | 0.93 | 1.01 |
PITTIENG.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 PITTIENG.NS:
cost_of_equity (15.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.93) + 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.