522134.BO WACC - Weighted Average Cost of Capital

The WACC of Artson Engineering Ltd (522134.BO) is 12.9%.

The Cost of Equity of Artson Engineering Ltd (522134.BO) is 13.00%.

The Cost of Debt of Artson Engineering Ltd (522134.BO) is 13.30%.

	Range	Selected
Cost of equity	11.40% - 14.60%	13.00%
Tax rate	13.90% - 20.00%	16.95%
Cost of debt	12.10% - 14.50%	13.30%
WACC	11.3% - 14.4%	12.9%

WACC

522134.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.54	0.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.40%	14.60%

Tax rate	13.90%	20.00%
Debt/Equity ratio	0.08	0.08
Cost of debt	12.10%	14.50%

After-tax WACC	11.3%	14.4%


Selected WACC	12.9%

522134.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 522134.BO:

cost_of_equity (13.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.54) + 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.