523021.BO WACC - Weighted Average Cost of Capital

The WACC of Rishi Techtex Ltd (523021.BO) is 11.4%.

The Cost of Equity of Rishi Techtex Ltd (523021.BO) is 14.00%.

The Cost of Debt of Rishi Techtex Ltd (523021.BO) is 10.85%.

	Range	Selected
Cost of equity	11.90% - 16.10%	14.00%
Tax rate	34.30% - 38.40%	36.35%
Cost of debt	10.50% - 11.20%	10.85%
WACC	10.1% - 12.8%	11.4%

WACC

523021.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.61	0.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	16.10%

Tax rate	34.30%	38.40%
Debt/Equity ratio	0.56	0.56
Cost of debt	10.50%	11.20%

After-tax WACC	10.1%	12.8%


Selected WACC	11.4%

523021.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 523021.BO:

cost_of_equity (14.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.61) + 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.