504000.BO WACC - Weighted Average Cost of Capital

The WACC of Elpro International Ltd (504000.BO) is 11.9%.

The Cost of Equity of Elpro International Ltd (504000.BO) is 13.85%.

The Cost of Debt of Elpro International Ltd (504000.BO) is 10.65%.

	Range	Selected
Cost of equity	11.40% - 16.30%	13.85%
Tax rate	15.20% - 18.20%	16.70%
Cost of debt	10.50% - 10.80%	10.65%
WACC	10.4% - 13.3%	11.9%

WACC

504000.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.55	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.40%	16.30%

Tax rate	15.20%	18.20%
Debt/Equity ratio	0.66	0.66
Cost of debt	10.50%	10.80%

After-tax WACC	10.4%	13.3%


Selected WACC	11.9%

504000.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 504000.BO:

cost_of_equity (13.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.55) + 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.