504840.BO WACC - Weighted Average Cost of Capital

The WACC of Kaira Can Co Ltd (504840.BO) is 15.6%.

The Cost of Equity of Kaira Can Co Ltd (504840.BO) is 15.85%.

The Cost of Debt of Kaira Can Co Ltd (504840.BO) is 7.50%.

	Range	Selected
Cost of equity	14.00% - 17.70%	15.85%
Tax rate	27.00% - 28.90%	27.95%
Cost of debt	7.50% - 7.50%	7.50%
WACC	13.8% - 17.4%	15.6%

WACC

504840.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.86	1.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.00%	17.70%

Tax rate	27.00%	28.90%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.50%	7.50%

After-tax WACC	13.8%	17.4%


Selected WACC	15.6%

504840.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 504840.BO:

cost_of_equity (15.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.86) + 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.