526133.BO WACC - Weighted Average Cost of Capital

The WACC of Supertex Industries Ltd (526133.BO) is 10.8%.

The Cost of Equity of Supertex Industries Ltd (526133.BO) is 13.05%.

The Cost of Debt of Supertex Industries Ltd (526133.BO) is 15.85%.

	Range	Selected
Cost of equity	11.50% - 14.60%	13.05%
Tax rate	23.90% - 46.20%	35.05%
Cost of debt	13.10% - 18.60%	15.85%
WACC	10.4% - 11.3%	10.8%

WACC

526133.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.55	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.50%	14.60%

Tax rate	23.90%	46.20%
Debt/Equity ratio	2.61	2.61
Cost of debt	13.10%	18.60%

After-tax WACC	10.4%	11.3%


Selected WACC	10.8%

526133.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 526133.BO:

cost_of_equity (13.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.55) + 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.