526723.BO WACC - Weighted Average Cost of Capital

The WACC of NTC Industries Ltd (526723.BO) is 11.1%.

The Cost of Equity of NTC Industries Ltd (526723.BO) is 11.80%.

The Cost of Debt of NTC Industries Ltd (526723.BO) is 9.45%.

	Range	Selected
Cost of equity	10.50% - 13.10%	11.80%
Tax rate	23.70% - 26.10%	24.90%
Cost of debt	8.90% - 10.00%	9.45%
WACC	10.0% - 12.3%	11.1%

WACC

526723.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.44	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	13.10%

Tax rate	23.70%	26.10%
Debt/Equity ratio	0.17	0.17
Cost of debt	8.90%	10.00%

After-tax WACC	10.0%	12.3%


Selected WACC	11.1%

526723.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 526723.BO:

cost_of_equity (11.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.44) + 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.