505978.BO WACC - Weighted Average Cost of Capital

The WACC of Triton Valves Ltd (505978.BO) is 14.2%.

The Cost of Equity of Triton Valves Ltd (505978.BO) is 16.05%.

The Cost of Debt of Triton Valves Ltd (505978.BO) is 10.85%.

	Range	Selected
Cost of equity	14.80% - 17.30%	16.05%
Tax rate	23.00% - 28.60%	25.80%
Cost of debt	9.60% - 12.10%	10.85%
WACC	13.1% - 15.3%	14.2%

WACC

505978.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.95	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.80%	17.30%

Tax rate	23.00%	28.60%
Debt/Equity ratio	0.3	0.3
Cost of debt	9.60%	12.10%

After-tax WACC	13.1%	15.3%


Selected WACC	14.2%

505978.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 505978.BO:

cost_of_equity (16.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.95) + 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.