512165.BO WACC - Weighted Average Cost of Capital

The WACC of Abans Enterprises Ltd (512165.BO) is 11.0%.

The Cost of Equity of Abans Enterprises Ltd (512165.BO) is 11.15%.

The Cost of Debt of Abans Enterprises Ltd (512165.BO) is 12.15%.

	Range	Selected
Cost of equity	10.30% - 12.00%	11.15%
Tax rate	3.50% - 18.20%	10.85%
Cost of debt	10.00% - 14.30%	12.15%
WACC	10.1% - 11.9%	11.0%

WACC

512165.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.42	0.44

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.30%	12.00%

Tax rate	3.50%	18.20%
Debt/Equity ratio	0.61	0.61
Cost of debt	10.00%	14.30%

After-tax WACC	10.1%	11.9%


Selected WACC	11.0%

512165.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 512165.BO:

cost_of_equity (11.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.42) + 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.