514316.BO WACC - Weighted Average Cost of Capital

The WACC of Raghuvir Synthetics Ltd (514316.BO) is 13.4%.

The Cost of Equity of Raghuvir Synthetics Ltd (514316.BO) is 14.00%.

The Cost of Debt of Raghuvir Synthetics Ltd (514316.BO) is 8.30%.

	Range	Selected
Cost of equity	11.80% - 16.20%	14.00%
Tax rate	11.60% - 14.70%	13.15%
Cost of debt	8.30% - 8.30%	8.30%
WACC	11.4% - 15.5%	13.4%

WACC

514316.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.59	0.9

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	16.20%

Tax rate	11.60%	14.70%
Debt/Equity ratio	0.09	0.09
Cost of debt	8.30%	8.30%

After-tax WACC	11.4%	15.5%


Selected WACC	13.4%

514316.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 514316.BO:

cost_of_equity (14.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.59) + 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.