517399.BO WACC - Weighted Average Cost of Capital
The WACC of VXL Instruments Ltd (517399.BO) is 10.1%.
| Range | Selected | |
| Cost of equity | 8.7% - 12.3% | 10.5% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 7.0% - 19.3% | 13.15% |
| WACC | 7.5% - 12.7% | 10.1% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.23 | 0.48 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.7% | 12.3% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 0.46 | 0.46 |
| Cost of debt | 7.0% | 19.3% |
| After-tax WACC | 7.5% | 12.7% |
| Selected WACC | 10.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 517399.BO | VXL Instruments Ltd | 0.46 | -0.02 | -0.01 |
| 070300.KQ | XCure Corp | 0.08 | 0.12 | 0.12 |
| 164.HK | China Baoli Technologies Holdings Ltd | 1.16 | 0.97 | 0.54 |
| 2443.TW | Lead Data Inc | 0.01 | -0.68 | -0.67 |
| 517119.BO | PCS Technology Ltd | 0.07 | 1.37 | 1.3 |
| 5AB.SI | Trek 2000 International Ltd | 0.01 | -0.45 | -0.45 |
| 6734.T | Newtech Co Ltd | 0.04 | 0.25 | 0.25 |
| 8066.HK | Phoenitron Holdings Ltd | 0.18 | -0.48 | -0.43 |
| NUH.AX | Nuheara Ltd | 0.12 | -0.29 | -0.27 |
| TVSELECT.NS | TVS Electronics Ltd | 0.05 | 1.45 | 1.4 |
| Low | High | |
| Unlevered beta | -0.12 | 0.17 |
| Relevered beta | -0.15 | 0.22 |
| Adjusted relevered beta | 0.23 | 0.48 |
517399.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 517399.BO:
cost_of_equity (10.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.23) + 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.