526747.BO WACC - Weighted Average Cost of Capital

The WACC of PG Foils Ltd (526747.BO) is 14.8%.

The Cost of Equity of PG Foils Ltd (526747.BO) is 17.80%.

The Cost of Debt of PG Foils Ltd (526747.BO) is 5.90%.

	Range	Selected
Cost of equity	16.00% - 19.60%	17.80%
Tax rate	22.80% - 24.60%	23.70%
Cost of debt	4.00% - 7.80%	5.90%
WACC	13.1% - 16.5%	14.8%

WACC

526747.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.1	1.26

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.00%	19.60%

Tax rate	22.80%	24.60%
Debt/Equity ratio	0.29	0.29
Cost of debt	4.00%	7.80%

After-tax WACC	13.1%	16.5%


Selected WACC	14.8%

526747.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 526747.BO:

cost_of_equity (17.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.1) + 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.