516003.BO WACC - Weighted Average Cost of Capital

The WACC of Duroply Industries Ltd (516003.BO) is 13.6%.

The Cost of Equity of Duroply Industries Ltd (516003.BO) is 15.00%.

The Cost of Debt of Duroply Industries Ltd (516003.BO) is 12.40%.

	Range	Selected
Cost of equity	13.50% - 16.50%	15.00%
Tax rate	37.40% - 43.50%	40.45%
Cost of debt	12.10% - 12.70%	12.40%
WACC	12.4% - 14.7%	13.6%

WACC

516003.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.8	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.50%	16.50%

Tax rate	37.40%	43.50%
Debt/Equity ratio	0.23	0.23
Cost of debt	12.10%	12.70%

After-tax WACC	12.4%	14.7%


Selected WACC	13.6%

516003.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 516003.BO:

cost_of_equity (15.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.8) + 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.