511672.BO WACC - Weighted Average Cost of Capital

The WACC of Scan Steels Ltd (511672.BO) is 11.1%.

The Cost of Equity of Scan Steels Ltd (511672.BO) is 13.30%.

The Cost of Debt of Scan Steels Ltd (511672.BO) is 9.55%.

	Range	Selected
Cost of equity	10.80% - 15.80%	13.30%
Tax rate	23.20% - 26.20%	24.70%
Cost of debt	8.30% - 10.80%	9.55%
WACC	9.2% - 13.1%	11.1%

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	0.47	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.80%	15.80%

Tax rate	23.20%	26.20%
Debt/Equity ratio	0.54	0.54
Cost of debt	8.30%	10.80%

After-tax WACC	9.2%	13.1%


Selected WACC	11.1%

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 (13.30%) = 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.