516110.BO WACC - Weighted Average Cost of Capital

The WACC of Scandent Imaging Ltd (516110.BO) is 13.7%.

The Cost of Equity of Scandent Imaging Ltd (516110.BO) is 15.35%.

The Cost of Debt of Scandent Imaging Ltd (516110.BO) is 7.05%.

	Range	Selected
Cost of equity	13.50% - 17.20%	15.35%
Tax rate	27.30% - 28.40%	27.85%
Cost of debt	6.60% - 7.50%	7.05%
WACC	12.1% - 15.3%	13.7%

WACC

516110.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	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.50%	17.20%

Tax rate	27.30%	28.40%
Debt/Equity ratio	0.2	0.2
Cost of debt	6.60%	7.50%

After-tax WACC	12.1%	15.3%


Selected WACC	13.7%

516110.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 516110.BO:

cost_of_equity (15.35%) = 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.