522231.BO WACC - Weighted Average Cost of Capital

The WACC of Conart Engineers Ltd (522231.BO) is 13.1%.

The Cost of Equity of Conart Engineers Ltd (522231.BO) is 13.15%.

The Cost of Debt of Conart Engineers Ltd (522231.BO) is 7.50%.

	Range	Selected
Cost of equity	11.20% - 15.10%	13.15%
Tax rate	23.10% - 24.70%	23.90%
Cost of debt	7.50% - 7.50%	7.50%
WACC	11.2% - 15.1%	13.1%

WACC

522231.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.52	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.20%	15.10%

Tax rate	23.10%	24.70%
Debt/Equity ratio	0	0
Cost of debt	7.50%	7.50%

After-tax WACC	11.2%	15.1%


Selected WACC	13.1%

522231.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 522231.BO:

cost_of_equity (13.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.52) + 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.