511672.BO WACC - Weighted Average Cost of Capital

The WACC of Scan Steels Ltd (511672.BO) is 10.8%.

The Cost of Equity of Scan Steels Ltd (511672.BO) is 13.10%.

The Cost of Debt of Scan Steels Ltd (511672.BO) is 9.65%.

	Range	Selected
Cost of equity	10.80% - 15.40%	13.10%
Tax rate	27.60% - 32.80%	30.20%
Cost of debt	8.30% - 11.00%	9.65%
WACC	9.1% - 12.5%	10.8%

WACC

511672.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.48	0.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.80%	15.40%

Tax rate	27.60%	32.80%
Debt/Equity ratio	0.55	0.55
Cost of debt	8.30%	11.00%

After-tax WACC	9.1%	12.5%


Selected WACC	10.8%

511672.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 511672.BO:

cost_of_equity (13.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.48) + 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.