504840.BO WACC - Weighted Average Cost of Capital

The WACC of Kaira Can Co Ltd (504840.BO) is 11.6%.

The Cost of Equity of Kaira Can Co Ltd (504840.BO) is 17.95%.

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

	Range	Selected
Cost of equity	15.50% - 20.40%	17.95%
Tax rate	29.20% - 29.80%	29.50%
Cost of debt	7.50% - 7.50%	7.50%
WACC	10.4% - 12.8%	11.6%

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	1.03	1.34

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.50%	20.40%

Tax rate	29.20%	29.80%
Debt/Equity ratio	1	1
Cost of debt	7.50%	7.50%

After-tax WACC	10.4%	12.8%


Selected WACC	11.6%

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 (17.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.03) + 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.