505358.BO WACC - Weighted Average Cost of Capital

The WACC of Integra Engineering India Ltd (505358.BO) is 13.0%.

The Cost of Equity of Integra Engineering India Ltd (505358.BO) is 13.25%.

The Cost of Debt of Integra Engineering India Ltd (505358.BO) is 5.85%.

	Range	Selected
Cost of equity	11.10% - 15.40%	13.25%
Tax rate	29.90% - 30.30%	30.10%
Cost of debt	4.20% - 7.50%	5.85%
WACC	10.9% - 15.1%	13.0%

WACC

505358.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.51	0.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.10%	15.40%

Tax rate	29.90%	30.30%
Debt/Equity ratio	0.03	0.03
Cost of debt	4.20%	7.50%

After-tax WACC	10.9%	15.1%


Selected WACC	13.0%

505358.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 505358.BO:

cost_of_equity (13.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.51) + 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.