RAMSARUP.NS
Ramsarup Industries Ltd
Price:  
1.35 
INR
Volume:  
24,260.00
India | Electrical Equipment
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RAMSARUP.NS WACC - Weighted Average Cost of Capital

The WACC of Ramsarup Industries Ltd (RAMSARUP.NS) is 6.0%.

The Cost of Equity of Ramsarup Industries Ltd (RAMSARUP.NS) is 538.90%.
The Cost of Debt of Ramsarup Industries Ltd (RAMSARUP.NS) is 7.10%.

Range Selected
Cost of equity 273.70% - 804.10% 538.90%
Tax rate 30.00% - 31.80% 30.90%
Cost of debt 7.00% - 7.20% 7.10%
WACC 5.5% - 6.6% 6.0%
WACC

RAMSARUP.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 6.9% 7.9%
Adjusted beta 38.55 100.53
Additional risk adjustments 0.0% 0.5%
Cost of equity 273.70% 804.10%
Tax rate 30.00% 31.80%
Debt/Equity ratio 482.36 482.36
Cost of debt 7.00% 7.20%
After-tax WACC 5.5% 6.6%
Selected WACC 6.0%

RAMSARUP.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 RAMSARUP.NS:

cost_of_equity (538.90%) = risk_free_rate (7.15%) + equity_risk_premium (7.40%) * adjusted_beta (38.55) + 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.