524654.BO WACC - Weighted Average Cost of Capital

The WACC of Natural Capsules Ltd (524654.BO) is 12.4%.

The Cost of Equity of Natural Capsules Ltd (524654.BO) is 14.10%.

The Cost of Debt of Natural Capsules Ltd (524654.BO) is 12.45%.

	Range	Selected
Cost of equity	12.60% - 15.60%	14.10%
Tax rate	27.40% - 29.30%	28.35%
Cost of debt	9.50% - 15.40%	12.45%
WACC	10.8% - 14.1%	12.4%

WACC

524654.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.69	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.60%	15.60%

Tax rate	27.40%	29.30%
Debt/Equity ratio	0.46	0.46
Cost of debt	9.50%	15.40%

After-tax WACC	10.8%	14.1%


Selected WACC	12.4%

524654.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 524654.BO:

cost_of_equity (14.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.69) + 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.