526506.BO WACC - Weighted Average Cost of Capital

The WACC of Systematix Corporate Services Ltd (526506.BO) is 13.9%.

The Cost of Equity of Systematix Corporate Services Ltd (526506.BO) is 14.10%.

The Cost of Debt of Systematix Corporate Services Ltd (526506.BO) is 8.85%.

	Range	Selected
Cost of equity	12.20% - 16.00%	14.10%
Tax rate	17.50% - 21.90%	19.70%
Cost of debt	7.50% - 10.20%	8.85%
WACC	12.1% - 15.8%	13.9%

WACC

526506.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.64	0.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.20%	16.00%

Tax rate	17.50%	21.90%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.50%	10.20%

After-tax WACC	12.1%	15.8%


Selected WACC	13.9%

526506.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 526506.BO:

cost_of_equity (14.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.64) + 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.