526640.BO WACC - Weighted Average Cost of Capital

The WACC of Royale Manor Hotels and Industries Ltd (526640.BO) is 12.0%.

The Cost of Equity of Royale Manor Hotels and Industries Ltd (526640.BO) is 12.45%.

The Cost of Debt of Royale Manor Hotels and Industries Ltd (526640.BO) is 9.10%.

	Range	Selected
Cost of equity	11.10% - 13.80%	12.45%
Tax rate	20.60% - 23.60%	22.10%
Cost of debt	7.90% - 10.30%	9.10%
WACC	10.7% - 13.4%	12.0%

WACC

526640.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.51	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.10%	13.80%

Tax rate	20.60%	23.60%
Debt/Equity ratio	0.08	0.08
Cost of debt	7.90%	10.30%

After-tax WACC	10.7%	13.4%


Selected WACC	12.0%

526640.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 526640.BO:

cost_of_equity (12.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.51) + 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.