526727.BO WACC - Weighted Average Cost of Capital

The WACC of Garnet Construction Ltd (526727.BO) is 15.6%.

The Cost of Equity of Garnet Construction Ltd (526727.BO) is 18.55%.

The Cost of Debt of Garnet Construction Ltd (526727.BO) is 7.40%.

	Range	Selected
Cost of equity	16.50% - 20.60%	18.55%
Tax rate	28.30% - 28.70%	28.50%
Cost of debt	7.30% - 7.50%	7.40%
WACC	14.0% - 17.2%	15.6%

WACC

526727.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.16	1.37

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.50%	20.60%

Tax rate	28.30%	28.70%
Debt/Equity ratio	0.29	0.29
Cost of debt	7.30%	7.50%

After-tax WACC	14.0%	17.2%


Selected WACC	15.6%

526727.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 526727.BO:

cost_of_equity (18.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.16) + 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.