522101.BO WACC - Weighted Average Cost of Capital

The WACC of Kilburn Engineering Ltd (522101.BO) is 13.9%.

The Cost of Equity of Kilburn Engineering Ltd (522101.BO) is 14.05%.

The Cost of Debt of Kilburn Engineering Ltd (522101.BO) is 10.15%.

	Range	Selected
Cost of equity	12.70% - 15.40%	14.05%
Tax rate	24.50% - 25.60%	25.05%
Cost of debt	7.90% - 12.40%	10.15%
WACC	12.5% - 15.3%	13.9%

WACC

522101.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.7	0.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.70%	15.40%

Tax rate	24.50%	25.60%
Debt/Equity ratio	0.03	0.03
Cost of debt	7.90%	12.40%

After-tax WACC	12.5%	15.3%


Selected WACC	13.9%

522101.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 522101.BO:

cost_of_equity (14.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.7) + 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.