523054.BO WACC - Weighted Average Cost of Capital

The WACC of Binayak Tex Processors Ltd (523054.BO) is 11.7%.

The Cost of Equity of Binayak Tex Processors Ltd (523054.BO) is 13.30%.

The Cost of Debt of Binayak Tex Processors Ltd (523054.BO) is 9.65%.

	Range	Selected
Cost of equity	12.10% - 14.50%	13.30%
Tax rate	30.40% - 32.00%	31.20%
Cost of debt	7.20% - 12.10%	9.65%
WACC	10.4% - 13.0%	11.7%

WACC

523054.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.63	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.10%	14.50%

Tax rate	30.40%	32.00%
Debt/Equity ratio	0.32	0.32
Cost of debt	7.20%	12.10%

After-tax WACC	10.4%	13.0%


Selected WACC	11.7%

523054.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 523054.BO:

cost_of_equity (13.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.63) + 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.