UBL.NS WACC - Weighted Average Cost of Capital
The WACC of United Breweries Ltd (UBL.NS) is 14.1%.
| Range | Selected | |
| Cost of equity | 12.0% - 16.3% | 14.15% |
| Tax rate | 26.5% - 26.9% | 26.7% |
| Cost of debt | 7.5% - 18.6% | 13.05% |
| WACC | 12.0% - 16.3% | 14.1% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.62 | 0.9 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.0% | 16.3% |
| Tax rate | 26.5% | 26.9% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 7.5% | 18.6% |
| After-tax WACC | 12.0% | 16.3% |
| Selected WACC | 14.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| UBL.NS | United Breweries Ltd | 0 | 0.49 | 0.49 |
| 000140.KS | HiteJinro Holdings Co Ltd | 6.45 | 0.5 | 0.09 |
| 000729.SZ | Beijing Yanjing Brewery Co Ltd | 0.02 | 0.76 | 0.75 |
| 526471.BO | Winsome Breweries Ltd | 0.1 | 1.09 | 1.01 |
| BHN.VN | Hanoi Beer Alcohol And Beverage Joint Stock Corp | 0.01 | 0.08 | 0.08 |
| CARLSBG.KL | Carlsberg Brewery Malaysia Bhd | 0.02 | 0.35 | 0.35 |
| HEIM.KL | Heineken Malaysia Bhd | 0.01 | 0.15 | 0.15 |
| SAB.VN | Saigon Beer Alcohol Beverage Corp | 0.01 | 1.03 | 1.03 |
| SDBL.NS | SOM Distilleries and Breweries Ltd | 0.05 | 1.54 | 1.48 |
| VBL.NS | Varun Beverages Ltd | 0.02 | 1.4 | 1.39 |
| Low | High | |
| Unlevered beta | 0.43 | 0.85 |
| Relevered beta | 0.43 | 0.85 |
| Adjusted relevered beta | 0.62 | 0.9 |
UBL.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 UBL.NS:
cost_of_equity (14.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.62) + 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.