509563.BO WACC - Weighted Average Cost of Capital

The WACC of Garware Marine Industries Ltd (509563.BO) is 11.7%.

The Cost of Equity of Garware Marine Industries Ltd (509563.BO) is 11.50%.

The Cost of Debt of Garware Marine Industries Ltd (509563.BO) is 25.20%.

	Range	Selected
Cost of equity	10.50% - 12.50%	11.50%
Tax rate	2.30% - 6.00%	4.15%
Cost of debt	7.50% - 42.90%	25.20%
WACC	10.5% - 13.0%	11.7%

WACC

509563.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.44	0.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	12.50%

Tax rate	2.30%	6.00%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.50%	42.90%

After-tax WACC	10.5%	13.0%


Selected WACC	11.7%

509563.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 509563.BO:

cost_of_equity (11.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.44) + 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.