509162.BO WACC - Weighted Average Cost of Capital

The WACC of Indag Rubber Ltd (509162.BO) is 15.0%.

The Cost of Equity of Indag Rubber Ltd (509162.BO) is 15.30%.

The Cost of Debt of Indag Rubber Ltd (509162.BO) is 7.50%.

	Range	Selected
Cost of equity	13.60% - 17.00%	15.30%
Tax rate	22.20% - 23.40%	22.80%
Cost of debt	7.50% - 7.50%	7.50%
WACC	13.4% - 16.7%	15.0%

WACC

509162.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.81	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.60%	17.00%

Tax rate	22.20%	23.40%
Debt/Equity ratio	0.03	0.03
Cost of debt	7.50%	7.50%

After-tax WACC	13.4%	16.7%


Selected WACC	15.0%

509162.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 509162.BO:

cost_of_equity (15.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.81) + 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.