516030.BO WACC - Weighted Average Cost of Capital

The WACC of Yash Pakka Limited (516030.BO) is 12.4%.

The Cost of Equity of Yash Pakka Limited (516030.BO) is 13.75%.

The Cost of Debt of Yash Pakka Limited (516030.BO) is 9.15%.

	Range	Selected
Cost of equity	12.50% - 15.00%	13.75%
Tax rate	28.90% - 30.20%	29.55%
Cost of debt	8.50% - 9.80%	9.15%
WACC	11.3% - 13.5%	12.4%

WACC

516030.BO WACC calculation

Category	Low	High

Long-term bond rate	7.4%	7.9%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.73	0.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.50%	15.00%

Tax rate	28.90%	30.20%
Debt/Equity ratio	0.22	0.22
Cost of debt	8.50%	9.80%

After-tax WACC	11.3%	13.5%


Selected WACC	12.4%

516030.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 516030.BO:

cost_of_equity (13.75%) = risk_free_rate (7.65%) + equity_risk_premium (7.40%) * adjusted_beta (0.73) + 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.