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UltraTech Cement Ltd has a current market cap of INR 307,028.14 million and a total debt of INR 16,963.85 million, with a post-tax cost of debt at 4.52% and a cost of equity at 17.76%. The company's weighted average cost of capital is 17.15%, with a debt/equity ratio of 5.53%. Comparatively, the document includes financial metrics for peer companies in the cement industry, highlighting their respective debt, equity, and beta values.

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63 views1 page

wacc

UltraTech Cement Ltd has a current market cap of INR 307,028.14 million and a total debt of INR 16,963.85 million, with a post-tax cost of debt at 4.52% and a cost of equity at 17.76%. The company's weighted average cost of capital is 17.15%, with a debt/equity ratio of 5.53%. Comparatively, the document includes financial metrics for peer companies in the cement industry, highlighting their respective debt, equity, and beta values.

Uploaded by

bittorathour978
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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ULTRATECH CEMENT LTD

( ULTRACEMCO I BSE CODE 532538


INR 10,571
52 Week ( HIGH 11,638 LOW 9,522 ) Weighted average Cost of Capital

All Figure are in INR unless Selected Otherwise

Peer Comps
Debt / Debt / Levered Unlevered
1
Name of the COMP Country Total Debt Total Equity Tax rate Equity Capital Beta 2 Beta 3

UltraTech Cem. India 16963.85 307028.14 30.00% 5.53% 5.24% 1.02 0.98
Ambuja Cements India 779.24 133008.65 30.00% 0.59% 0.58% 1.80 1.79
Shree Cement India 1682.2 91863.93 30.00% 1.83% 1.80% 0.79 0.78
ACC India 457.41 37294.57 30.00% 1.23% 1.21% 1.69 1.68
J K Cements India 5738.03 35157.09 30.00% 16.32% 14.03% 0.92 0.83

Average 30.00% 5.10% 4.57% 1.24 1.21


Median 30.00% 1.83% 1.80% 1.02 0.98

Cost of Debt Cost of Equity

Pre-Tax Cost of Debt 6.46% Risk-Free Rate 6.86%


Tax Rate 30.00% Equity Risk Premium 8.63%
Post-Tax Cost of Debt 4.52% Levered Beta 4 1.26
Cost of Equity 17.76%

Capital Structure Levered Beta

Current Target Comps Median Unlevered Beta 0.98


Total debt 16963.85 5.24% 4.57% Target Debt /Equity 0.048
Market Cap 307028.14 94.76% 95.43% Tax Rate 30.00%
Total Capital 323991.99 100% 100.00% Levered Beta 1.26

Debt/Equity 5.53% 4.79%


Weighted Average Cost of Capital

Total Cost Total Weight


Notes: Debt 4.52% 4.57%
1. Tax rate Considered as marginal tax rate for the country Equity 18% 95.43%
2. Levered beta is baised on 5 year monthly data Weighted Average Cost Of Capital 17.15%
3. Unleverd Beta =levered Beta/(1+(1-Tax Rate)*Debt/Equity)

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