511628.BO WACC - Weighted Average Cost of Capital

The WACC of IM+ Capitals Ltd (511628.BO) is 12.3%.

The Cost of Equity of IM+ Capitals Ltd (511628.BO) is 11.95%.

The Cost of Debt of IM+ Capitals Ltd (511628.BO) is 24.95%.

	Range	Selected
Cost of equity	10.70% - 13.20%	11.95%
Tax rate	18.80% - 28.90%	23.85%
Cost of debt	7.50% - 42.40%	24.95%
WACC	10.5% - 14.2%	12.3%

WACC

511628.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.47	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.70%	13.20%

Tax rate	18.80%	28.90%
Debt/Equity ratio	0.06	0.06
Cost of debt	7.50%	42.40%

After-tax WACC	10.5%	14.2%


Selected WACC	12.3%

511628.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 511628.BO:

cost_of_equity (11.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.47) + 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.