523329.BO WACC - Weighted Average Cost of Capital

The WACC of Eldeco Housing And Industries Ltd (523329.BO) is 13.7%.

The Cost of Equity of Eldeco Housing And Industries Ltd (523329.BO) is 13.60%.

The Cost of Debt of Eldeco Housing And Industries Ltd (523329.BO) is 26.25%.

	Range	Selected
Cost of equity	12.50% - 14.70%	13.60%
Tax rate	27.80% - 29.70%	28.75%
Cost of debt	8.20% - 44.30%	26.25%
WACC	12.4% - 14.9%	13.7%

WACC

523329.BO WACC calculation

Category	Low	High

Long-term bond rate	7.5%	8.0%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.72	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.50%	14.70%

Tax rate	27.80%	29.70%
Debt/Equity ratio	0.01	0.01
Cost of debt	8.20%	44.30%

After-tax WACC	12.4%	14.9%


Selected WACC	13.7%

523329.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 523329.BO:

cost_of_equity (13.60%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (0.72) + 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.