519532.BO WACC - Weighted Average Cost of Capital

The WACC of Asian Tea & Exports Ltd (519532.BO) is 13.9%.

The Cost of Equity of Asian Tea & Exports Ltd (519532.BO) is 16.35%.

The Cost of Debt of Asian Tea & Exports Ltd (519532.BO) is 13.05%.

	Range	Selected
Cost of equity	14.50% - 18.20%	16.35%
Tax rate	8.60% - 13.20%	10.90%
Cost of debt	7.50% - 18.60%	13.05%
WACC	10.6% - 17.2%	13.9%

WACC

519532.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.92	1.11

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.50%	18.20%

Tax rate	8.60%	13.20%
Debt/Equity ratio	1.04	1.04
Cost of debt	7.50%	18.60%

After-tax WACC	10.6%	17.2%


Selected WACC	13.9%

519532.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 519532.BO:

cost_of_equity (16.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.92) + 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.