506248.BO WACC - Weighted Average Cost of Capital

The WACC of Amines and Plasticizers Ltd (506248.BO) is 16.6%.

The Cost of Equity of Amines and Plasticizers Ltd (506248.BO) is 17.40%.

The Cost of Debt of Amines and Plasticizers Ltd (506248.BO) is 11.85%.

	Range	Selected
Cost of equity	15.70% - 19.10%	17.40%
Tax rate	25.30% - 25.80%	25.55%
Cost of debt	9.90% - 13.80%	11.85%
WACC	14.9% - 18.3%	16.6%

WACC

506248.BO WACC calculation

Category	Low	High

Long-term bond rate	7.2%	7.7%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.96	1.11

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.70%	19.10%

Tax rate	25.30%	25.80%
Debt/Equity ratio	0.1	0.1
Cost of debt	9.90%	13.80%

After-tax WACC	14.9%	18.3%


Selected WACC	16.6%

506248.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 506248.BO:

cost_of_equity (17.40%) = risk_free_rate (7.45%) + equity_risk_premium (9.30%) * adjusted_beta (0.96) + 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.