526588.BO WACC - Weighted Average Cost of Capital

The WACC of Photoquip (India) Ltd (526588.BO) is 11.1%.

The Cost of Equity of Photoquip (India) Ltd (526588.BO) is 14.05%.

The Cost of Debt of Photoquip (India) Ltd (526588.BO) is 11.25%.

	Range	Selected
Cost of equity	12.00% - 16.10%	14.05%
Tax rate	27.90% - 29.80%	28.85%
Cost of debt	10.40% - 12.10%	11.25%
WACC	9.8% - 12.5%	11.1%

WACC

526588.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.61	0.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.00%	16.10%

Tax rate	27.90%	29.80%
Debt/Equity ratio	0.92	0.92
Cost of debt	10.40%	12.10%

After-tax WACC	9.8%	12.5%


Selected WACC	11.1%

526588.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 526588.BO:

cost_of_equity (14.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.61) + 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.