The WACC of Stampede Capital Ltd (STAMPEDE.NS) is 15.1%.
| Range | Selected | |
| Cost of equity | 14.70% - 19.10% | 16.90% |
| Tax rate | 0.10% - 0.40% | 0.25% |
| Cost of debt | 5.00% - 5.00% | 5.00% |
| WACC | 13.3% - 16.9% | 15.1% |
| Category | Low | High |
| Long-term bond rate | 7.2% | 7.7% |
| Equity market risk premium | 8.8% | 9.8% |
| Adjusted beta | 0.85 | 1.1 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.70% | 19.10% |
| Tax rate | 0.10% | 0.40% |
| Debt/Equity ratio | 0.18 | 0.18 |
| Cost of debt | 5.00% | 5.00% |
| After-tax WACC | 13.3% | 16.9% |
| Selected WACC | 15.1% | |
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 STAMPEDE.NS:
cost_of_equity (16.90%) = risk_free_rate (7.45%) + equity_risk_premium (9.30%) * adjusted_beta (0.85) + 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.