506919.BO WACC - Weighted Average Cost of Capital

The WACC of Makers Laboratories Ltd (506919.BO) is 15.7%.

The Cost of Equity of Makers Laboratories Ltd (506919.BO) is 16.85%.

The Cost of Debt of Makers Laboratories Ltd (506919.BO) is 11.55%.

	Range	Selected
Cost of equity	14.90% - 18.80%	16.85%
Tax rate	24.30% - 35.20%	29.75%
Cost of debt	7.60% - 15.50%	11.55%
WACC	13.7% - 17.7%	15.7%

WACC

506919.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.97	1.17

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.90%	18.80%

Tax rate	24.30%	35.20%
Debt/Equity ratio	0.15	0.15
Cost of debt	7.60%	15.50%

After-tax WACC	13.7%	17.7%


Selected WACC	15.7%

506919.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 506919.BO:

cost_of_equity (16.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.97) + 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.