507690.BO WACC - Weighted Average Cost of Capital

The WACC of Orient Beverages Ltd (507690.BO) is 11.8%.

The Cost of Equity of Orient Beverages Ltd (507690.BO) is 15.80%.

The Cost of Debt of Orient Beverages Ltd (507690.BO) is 13.55%.

	Range	Selected
Cost of equity	14.10% - 17.50%	15.80%
Tax rate	17.50% - 41.80%	29.65%
Cost of debt	11.70% - 15.40%	13.55%
WACC	11.4% - 12.2%	11.8%

WACC

507690.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.87	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.10%	17.50%

Tax rate	17.50%	41.80%
Debt/Equity ratio	1.57	1.57
Cost of debt	11.70%	15.40%

After-tax WACC	11.4%	12.2%


Selected WACC	11.8%

507690.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 507690.BO:

cost_of_equity (15.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.87) + 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.