506134.BO WACC - Weighted Average Cost of Capital

The WACC of Intellivate Capital Ventures Ltd (506134.BO) is 14.1%.

The Cost of Equity of Intellivate Capital Ventures Ltd (506134.BO) is 13.95%.

The Cost of Debt of Intellivate Capital Ventures Ltd (506134.BO) is 18.60%.

	Range	Selected
Cost of equity	11.40% - 16.50%	13.95%
Tax rate	22.40% - 23.60%	23.00%
Cost of debt	18.60% - 18.60%	18.60%
WACC	12.8% - 15.5%	14.1%

WACC

506134.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.55	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.40%	16.50%

Tax rate	22.40%	23.60%
Debt/Equity ratio	0.85	0.85
Cost of debt	18.60%	18.60%

After-tax WACC	12.8%	15.5%


Selected WACC	14.1%

506134.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 506134.BO:

cost_of_equity (13.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.55) + 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.