512565.BO WACC - Weighted Average Cost of Capital

The WACC of R T Exports Ltd (512565.BO) is 11.0%.

The Cost of Equity of R T Exports Ltd (512565.BO) is 10.95%.

The Cost of Debt of R T Exports Ltd (512565.BO) is 15.45%.

	Range	Selected
Cost of equity	9.70% - 12.20%	10.95%
Tax rate	5.80% - 14.50%	10.15%
Cost of debt	4.00% - 26.90%	15.45%
WACC	9.5% - 12.5%	11.0%

WACC

512565.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.34	0.46

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	12.20%

Tax rate	5.80%	14.50%
Debt/Equity ratio	0.04	0.04
Cost of debt	4.00%	26.90%

After-tax WACC	9.5%	12.5%


Selected WACC	11.0%

512565.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 512565.BO:

cost_of_equity (10.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.34) + 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.