507552.BO WACC - Weighted Average Cost of Capital

The WACC of Foods And Inns Ltd (507552.BO) is 12.4%.

The Cost of Equity of Foods And Inns Ltd (507552.BO) is 13.50%.

The Cost of Debt of Foods And Inns Ltd (507552.BO) is 13.25%.

	Range	Selected
Cost of equity	11.80% - 15.20%	13.50%
Tax rate	18.60% - 26.80%	22.70%
Cost of debt	9.50% - 17.00%	13.25%
WACC	10.5% - 14.3%	12.4%

WACC

507552.BO WACC calculation

Category	Low	High

Long-term bond rate	7.5%	8.0%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.62	0.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	15.20%

Tax rate	18.60%	26.80%
Debt/Equity ratio	0.51	0.51
Cost of debt	9.50%	17.00%

After-tax WACC	10.5%	14.3%


Selected WACC	12.4%

507552.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 507552.BO:

cost_of_equity (13.50%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (0.62) + 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.