523672.BO WACC - Weighted Average Cost of Capital

The WACC of Flex Foods Ltd (523672.BO) is 15.0%.

The Cost of Equity of Flex Foods Ltd (523672.BO) is 22.30%.

The Cost of Debt of Flex Foods Ltd (523672.BO) is 18.30%.

	Range	Selected
Cost of equity	15.20% - 29.40%	22.30%
Tax rate	24.70% - 25.40%	25.05%
Cost of debt	7.00% - 29.60%	18.30%
WACC	6.8% - 23.2%	15.0%

WACC

523672.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	2.32

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.20%	29.40%

Tax rate	24.70%	25.40%
Debt/Equity ratio	5.49	5.49
Cost of debt	7.00%	29.60%

After-tax WACC	6.8%	23.2%


Selected WACC	15.0%

523672.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 523672.BO:

cost_of_equity (22.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1) + 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.