512048.BO WACC - Weighted Average Cost of Capital

The WACC of Luharuka Media & Infra Ltd (512048.BO) is 11.9%.

The Cost of Equity of Luharuka Media & Infra Ltd (512048.BO) is 11.90%.

The Cost of Debt of Luharuka Media & Infra Ltd (512048.BO) is 7.50%.

	Range	Selected
Cost of equity	10.10% - 13.70%	11.90%
Tax rate	25.80% - 28.30%	27.05%
Cost of debt	7.50% - 7.50%	7.50%
WACC	10.1% - 13.6%	11.9%

WACC

512048.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.4	0.62

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.10%	13.70%

Tax rate	25.80%	28.30%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.50%	7.50%

After-tax WACC	10.1%	13.6%


Selected WACC	11.9%

512048.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 512048.BO:

cost_of_equity (11.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.4) + 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.