503162.BO WACC - Weighted Average Cost of Capital

The WACC of Reliance Chemotex Industries Ltd (503162.BO) is 12.4%.

The Cost of Equity of Reliance Chemotex Industries Ltd (503162.BO) is 15.20%.

The Cost of Debt of Reliance Chemotex Industries Ltd (503162.BO) is 13.40%.

	Range	Selected
Cost of equity	13.30% - 17.10%	15.20%
Tax rate	33.50% - 39.90%	36.70%
Cost of debt	13.30% - 13.50%	13.40%
WACC	11.5% - 13.3%	12.4%

WACC

503162.BO WACC calculation

Category	Low	High

Long-term bond rate	7.5%	8.0%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.84	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.30%	17.10%

Tax rate	33.50%	39.90%
Debt/Equity ratio	0.71	0.71
Cost of debt	13.30%	13.50%

After-tax WACC	11.5%	13.3%


Selected WACC	12.4%

503162.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 503162.BO:

cost_of_equity (15.20%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (0.84) + 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.