520155.BO WACC - Weighted Average Cost of Capital

The WACC of Starlog Enterprises Ltd (520155.BO) is 11.5%.

The Cost of Equity of Starlog Enterprises Ltd (520155.BO) is 11.45%.

The Cost of Debt of Starlog Enterprises Ltd (520155.BO) is 12.10%.

	Range	Selected
Cost of equity	9.70% - 13.20%	11.45%
Tax rate	0.20% - 0.40%	0.30%
Cost of debt	5.60% - 18.60%	12.10%
WACC	9.3% - 13.7%	11.5%

WACC

520155.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.34	0.58

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	13.20%

Tax rate	0.20%	0.40%
Debt/Equity ratio	0.11	0.11
Cost of debt	5.60%	18.60%

After-tax WACC	9.3%	13.7%


Selected WACC	11.5%

520155.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 520155.BO:

cost_of_equity (11.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.34) + 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.