The WACC of Cian Agro Industries & Infrastructure Ltd (519477.BO) is 11.4%.
| Range | Selected | |
| Cost of equity | 10.10% - 13.60% | 11.85% |
| Tax rate | 29.40% - 49.50% | 39.45% |
| Cost of debt | 12.10% - 26.50% | 19.30% |
| WACC | 9.3% - 13.5% | 11.4% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.39 | 0.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.10% | 13.60% |
| Tax rate | 29.40% | 49.50% |
| Debt/Equity ratio | 0.99 | 0.99 |
| Cost of debt | 12.10% | 26.50% |
| After-tax WACC | 9.3% | 13.5% |
| Selected WACC | 11.4% | |
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 519477.BO:
cost_of_equity (11.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.39) + 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.