523248.BO WACC - Weighted Average Cost of Capital

The WACC of Machino Plastics Ltd (523248.BO) is 12.8%.

The Cost of Equity of Machino Plastics Ltd (523248.BO) is 19.30%.

The Cost of Debt of Machino Plastics Ltd (523248.BO) is 10.25%.

	Range	Selected
Cost of equity	17.50% - 21.10%	19.30%
Tax rate	27.00% - 28.30%	27.65%
Cost of debt	8.40% - 12.10%	10.25%
WACC	11.2% - 14.3%	12.8%

WACC

523248.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.28	1.42

Additional risk adjustments	0.0%	0.5%
Cost of equity	17.50%	21.10%

Tax rate	27.00%	28.30%
Debt/Equity ratio	1.22	1.22
Cost of debt	8.40%	12.10%

After-tax WACC	11.2%	14.3%


Selected WACC	12.8%

523248.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 523248.BO:

cost_of_equity (19.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.28) + 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.