514010.BO WACC - Weighted Average Cost of Capital

The WACC of Himachal Fibres Ltd (514010.BO) is 10.5%.

The Cost of Equity of Himachal Fibres Ltd (514010.BO) is 10.55%.

The Cost of Debt of Himachal Fibres Ltd (514010.BO) is 9.30%.

	Range	Selected
Cost of equity	9.60% - 11.50%	10.55%
Tax rate	3.90% - 8.90%	6.40%
Cost of debt	7.00% - 11.60%	9.30%
WACC	9.5% - 11.5%	10.5%

WACC

514010.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.32	0.39

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	11.50%

Tax rate	3.90%	8.90%
Debt/Equity ratio	0.04	0.04
Cost of debt	7.00%	11.60%

After-tax WACC	9.5%	11.5%


Selected WACC	10.5%

514010.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 514010.BO:

cost_of_equity (10.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.32) + 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.