YTRA WACC - Weighted Average Cost of Capital
The WACC of Yatra Online Inc (YTRA) is 7.3%.
| Range | Selected | |
| Cost of equity | 6.0% - 9.7% | 7.85% |
| Tax rate | 9.0% - 14.6% | 11.8% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.8% - 8.9% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.46 | 0.87 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 9.7% |
| Tax rate | 9.0% | 14.6% |
| Debt/Equity ratio | 0.17 | 0.17 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.8% | 8.9% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| YTRA | Yatra Online Inc | 0.17 | 0.95 | 0.82 |
| BKNG | Booking Holdings Inc | 0.09 | 1.15 | 1.07 |
| CANG | Cango Inc | 0.03 | 0.21 | 0.2 |
| DESP | Despegar.com Corp | 0.03 | 0.63 | 0.61 |
| EXPE | Expedia Group Inc | 0.27 | 1.43 | 1.15 |
| HEWA | HealthWarehouse.com Inc | 0.37 | 0.15 | 0.11 |
| HOC.V | Hunter Technology Corp | 2.44 | -0.78 | -0.25 |
| TCOM | Trip.com Group Ltd | 0.22 | 1.25 | 1.04 |
| VTEQ | Veriteq Corp | 125.5 | 1.01 | 0.01 |
| HAPPY.CO | Happy Helper A/S | 1.68 | -0.48 | -0.19 |
| Low | High | |
| Unlevered beta | 0.16 | 0.7 |
| Relevered beta | 0.19 | 0.81 |
| Adjusted relevered beta | 0.46 | 0.87 |
YTRA'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 YTRA:
cost_of_equity (7.85%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.46) + 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.