500123.BO WACC - Weighted Average Cost of Capital

The WACC of ELANTAS Beck India Ltd (500123.BO) is 11.5%.

The Cost of Equity of ELANTAS Beck India Ltd (500123.BO) is 17.35%.

The Cost of Debt of ELANTAS Beck India Ltd (500123.BO) is 7.50%.

	Range	Selected
Cost of equity	14.60% - 20.10%	17.35%
Tax rate	24.80% - 25.40%	25.10%
Cost of debt	7.50% - 7.50%	7.50%
WACC	10.1% - 12.8%	11.5%

WACC

500123.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.93	1.31

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.60%	20.10%

Tax rate	24.80%	25.40%
Debt/Equity ratio	1	1
Cost of debt	7.50%	7.50%

After-tax WACC	10.1%	12.8%


Selected WACC	11.5%

500123.BO'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 500123.BO:

cost_of_equity (17.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.93) + 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.