509709.BO WACC - Weighted Average Cost of Capital

The WACC of International Conveyors Ltd (509709.BO) is 61.5%.

The Cost of Equity of International Conveyors Ltd (509709.BO) is 15.15%.

The Cost of Debt of International Conveyors Ltd (509709.BO) is 817.15%.

	Range	Selected
Cost of equity	12.70% - 17.60%	15.15%
Tax rate	38.20% - 43.30%	40.75%
Cost of debt	13.50% - 1,620.80%	817.15%
WACC	12.3% - 110.8%	61.5%

WACC

509709.BO WACC calculation

Category	Low	High

Long-term bond rate	7.5%	8.0%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.75	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.70%	17.60%

Tax rate	38.20%	43.30%
Debt/Equity ratio	0.12	0.12
Cost of debt	13.50%	1,620.80%

After-tax WACC	12.3%	110.8%


Selected WACC	61.5%

509709.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 509709.BO:

cost_of_equity (15.15%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (0.75) + 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.