512455.BO WACC - Weighted Average Cost of Capital

The WACC of Lloyds Metals And Energy Ltd (512455.BO) is 11.5%.

The Cost of Equity of Lloyds Metals And Energy Ltd (512455.BO) is 11.45%.

The Cost of Debt of Lloyds Metals And Energy Ltd (512455.BO) is 15.50%.

	Range	Selected
Cost of equity	10.10% - 12.80%	11.45%
Tax rate	6.50% - 17.50%	12.00%
Cost of debt	8.10% - 22.90%	15.50%
WACC	10.1% - 12.8%	11.5%

WACC

512455.BO WACC calculation

Category	Low	High

Long-term bond rate	7.4%	7.9%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.39	0.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.10%	12.80%

Tax rate	6.50%	17.50%
Debt/Equity ratio	0	0
Cost of debt	8.10%	22.90%

After-tax WACC	10.1%	12.8%


Selected WACC	11.5%

512455.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 512455.BO:

cost_of_equity (11.45%) = risk_free_rate (7.65%) + equity_risk_premium (7.40%) * adjusted_beta (0.39) + 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.