526861.BO WACC - Weighted Average Cost of Capital

The WACC of Rishi Laser Ltd (526861.BO) is 14.5%.

The Cost of Equity of Rishi Laser Ltd (526861.BO) is 14.80%.

The Cost of Debt of Rishi Laser Ltd (526861.BO) is 13.30%.

	Range	Selected
Cost of equity	13.20% - 16.40%	14.80%
Tax rate	7.30% - 8.40%	7.85%
Cost of debt	8.60% - 18.00%	13.30%
WACC	12.6% - 16.4%	14.5%

WACC

526861.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.77	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.20%	16.40%

Tax rate	7.30%	8.40%
Debt/Equity ratio	0.15	0.15
Cost of debt	8.60%	18.00%

After-tax WACC	12.6%	16.4%


Selected WACC	14.5%

526861.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 526861.BO:

cost_of_equity (14.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.77) + 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.