513713.BO WACC - Weighted Average Cost of Capital

The WACC of White Organic Agro Ltd (513713.BO) is 17.8%.

The Cost of Equity of White Organic Agro Ltd (513713.BO) is 18.50%.

The Cost of Debt of White Organic Agro Ltd (513713.BO) is 23.90%.

	Range	Selected
Cost of equity	16.10% - 20.90%	18.50%
Tax rate	27.30% - 28.20%	27.75%
Cost of debt	23.90% - 23.90%	23.90%
WACC	16.7% - 19.0%	17.8%

WACC

513713.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.11	1.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.10%	20.90%

Tax rate	27.30%	28.20%
Debt/Equity ratio	1	1
Cost of debt	23.90%	23.90%

After-tax WACC	16.7%	19.0%


Selected WACC	17.8%

513713.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 513713.BO:

cost_of_equity (18.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.11) + 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.