505978.BO WACC - Weighted Average Cost of Capital

The WACC of Triton Valves Ltd (505978.BO) is 15.6%.

The Cost of Equity of Triton Valves Ltd (505978.BO) is 17.40%.

The Cost of Debt of Triton Valves Ltd (505978.BO) is 13.65%.

	Range	Selected
Cost of equity	15.90% - 18.90%	17.40%
Tax rate	23.00% - 25.60%	24.30%
Cost of debt	8.70% - 18.60%	13.65%
WACC	13.5% - 17.6%	15.6%

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	1.09	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.90%	18.90%

Tax rate	23.00%	25.60%
Debt/Equity ratio	0.35	0.35
Cost of debt	8.70%	18.60%

After-tax WACC	13.5%	17.6%


Selected WACC	15.6%

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 (17.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.09) + 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.