511672.BO WACC - Weighted Average Cost of Capital

The WACC of Scan Steels Ltd (511672.BO) is 9.6%.

The Cost of Equity of Scan Steels Ltd (511672.BO) is 11.10%.

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

	Range	Selected
Cost of equity	9.80% - 12.40%	11.10%
Tax rate	27.60% - 32.80%	30.20%
Cost of debt	8.30% - 11.00%	9.65%
WACC	8.5% - 10.7%	9.6%

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	0.35	0.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	12.40%

Tax rate	27.60%	32.80%
Debt/Equity ratio	0.52	0.52
Cost of debt	8.30%	11.00%

After-tax WACC	8.5%	10.7%


Selected WACC	9.6%

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 (11.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.35) + 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.