The WACC of Rajesh Exports Ltd (RAJESHEXPO.NS) is 12.6%.
Range | Selected | |
Cost of equity | 11.4% - 14.0% | 12.7% |
Tax rate | 3.9% - 4.8% | 4.35% |
Cost of debt | 12.1% - 12.3% | 12.2% |
WACC | 11.4% - 13.8% | 12.6% |
Category | Low | High |
Long-term bond rate | 6.9% | 7.4% |
Equity market risk premium | 8.3% | 9.3% |
Adjusted beta | 0.55 | 0.66 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 11.4% | 14.0% |
Tax rate | 3.9% | 4.8% |
Debt/Equity ratio | 0.11 | 0.11 |
Cost of debt | 12.1% | 12.3% |
After-tax WACC | 11.4% | 13.8% |
Selected WACC | 12.6% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
RAJESHEXPO.NS | Rajesh Exports Ltd | 0.11 | 1.57 | 1.42 |
531847.BO | Asian Star Co Ltd | 0.62 | 0.32 | 0.2 |
540715.BO | Sagar Diamonds Ltd | 0.15 | -0.3 | -0.26 |
AARVEEDEN.NS | Aarvee Denims and Exports Ltd | 0.78 | -0.22 | -0.13 |
BIL.NS | Bhartiya International Ltd | 0.51 | 0.63 | 0.42 |
KPRMILL.NS | KPR Mill Ltd | 0.01 | 0.12 | 0.12 |
PAGEIND.NS | Page Industries Ltd | 0 | 0.74 | 0.74 |
PDSMFL.NS | PDS Multinational Fashions Ltd | 0.13 | 0.53 | 0.47 |
SAFARI.NS | Safari Industries (India) Ltd | 0.01 | 0.36 | 0.36 |
TITAN.NS | Titan Company Ltd | 0.05 | 0.93 | 0.89 |
Low | High | |
Unlevered beta | 0.3 | 0.44 |
Relevered beta | 0.33 | 0.49 |
Adjusted relevered beta | 0.55 | 0.66 |
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 RAJESHEXPO.NS:
cost_of_equity (12.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.55) + 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.