513043.BO WACC - Weighted Average Cost of Capital

The WACC of Remi Edelstahl Tubulars Ltd (513043.BO) is 12.3%.

The Cost of Equity of Remi Edelstahl Tubulars Ltd (513043.BO) is 13.55%.

The Cost of Debt of Remi Edelstahl Tubulars Ltd (513043.BO) is 8.50%.

	Range	Selected
Cost of equity	12.30% - 14.80%	13.55%
Tax rate	25.90% - 34.30%	30.10%
Cost of debt	7.90% - 9.10%	8.50%
WACC	11.2% - 13.3%	12.3%

WACC

513043.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.66	0.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.30%	14.80%

Tax rate	25.90%	34.30%
Debt/Equity ratio	0.21	0.21
Cost of debt	7.90%	9.10%

After-tax WACC	11.2%	13.3%


Selected WACC	12.3%

513043.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 513043.BO:

cost_of_equity (13.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.66) + 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.