523120.BO WACC - Weighted Average Cost of Capital

The WACC of Ador Multi Products Ltd (523120.BO) is 11.4%.

The Cost of Equity of Ador Multi Products Ltd (523120.BO) is 11.50%.

The Cost of Debt of Ador Multi Products Ltd (523120.BO) is 9.30%.

	Range	Selected
Cost of equity	10.20% - 12.80%	11.50%
Tax rate	7.20% - 15.00%	11.10%
Cost of debt	7.00% - 11.60%	9.30%
WACC	10.1% - 12.7%	11.4%

WACC

523120.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.4	0.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	12.80%

Tax rate	7.20%	15.00%
Debt/Equity ratio	0.03	0.03
Cost of debt	7.00%	11.60%

After-tax WACC	10.1%	12.7%


Selected WACC	11.4%

523120.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 523120.BO:

cost_of_equity (11.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.4) + 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.