514197.BO WACC - Weighted Average Cost of Capital

The WACC of S & T Corporation Ltd (514197.BO) is 12.1%.

The Cost of Equity of S & T Corporation Ltd (514197.BO) is 13.10%.

The Cost of Debt of S & T Corporation Ltd (514197.BO) is 7.50%.

	Range	Selected
Cost of equity	11.90% - 14.30%	13.10%
Tax rate	30.00% - 30.00%	30.00%
Cost of debt	7.50% - 7.50%	7.50%
WACC	11.1% - 13.2%	12.1%

WACC

514197.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.61	0.69

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	14.30%

Tax rate	30.00%	30.00%
Debt/Equity ratio	0.14	0.14
Cost of debt	7.50%	7.50%

After-tax WACC	11.1%	13.2%


Selected WACC	12.1%

514197.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 514197.BO:

cost_of_equity (13.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.61) + 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.