500365.BO WACC - Weighted Average Cost of Capital

The WACC of Welspun Specialty Solutions Ltd (500365.BO) is 15.6%.

The Cost of Equity of Welspun Specialty Solutions Ltd (500365.BO) is 15.20%.

The Cost of Debt of Welspun Specialty Solutions Ltd (500365.BO) is 19.35%.

	Range	Selected
Cost of equity	13.60% - 16.80%	15.20%
Tax rate	0.10% - 1.00%	0.55%
Cost of debt	14.80% - 23.90%	19.35%
WACC	13.7% - 17.5%	15.6%

WACC

500365.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.81	0.96

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.60%	16.80%

Tax rate	0.10%	1.00%
Debt/Equity ratio	0.11	0.11
Cost of debt	14.80%	23.90%

After-tax WACC	13.7%	17.5%


Selected WACC	15.6%

500365.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 500365.BO:

cost_of_equity (15.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.81) + 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.