512008.BO WACC - Weighted Average Cost of Capital

The WACC of Amani Trading and Exports Ltd (512008.BO) is 11.1%.

The Cost of Equity of Amani Trading and Exports Ltd (512008.BO) is 12.50%.

The Cost of Debt of Amani Trading and Exports Ltd (512008.BO) is 8.10%.

	Range	Selected
Cost of equity	11.10% - 13.90%	12.50%
Tax rate	26.50% - 31.30%	28.90%
Cost of debt	8.10% - 8.10%	8.10%
WACC	10.1% - 12.2%	11.1%

WACC

512008.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.51	0.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.10%	13.90%

Tax rate	26.50%	31.30%
Debt/Equity ratio	0.26	0.26
Cost of debt	8.10%	8.10%

After-tax WACC	10.1%	12.2%


Selected WACC	11.1%

512008.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 512008.BO:

cost_of_equity (12.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.51) + 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.