526871.BO WACC - Weighted Average Cost of Capital

The WACC of Intec Capital Ltd (526871.BO) is 6.1%.

The Cost of Equity of Intec Capital Ltd (526871.BO) is 10.60%.

The Cost of Debt of Intec Capital Ltd (526871.BO) is 5.50%.

	Range	Selected
Cost of equity	9.50% - 11.70%	10.60%
Tax rate	27.50% - 32.90%	30.20%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.2% - 7.1%	6.1%

WACC

526871.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.31	0.41

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.50%	11.70%

Tax rate	27.50%	32.90%
Debt/Equity ratio	1.89	1.89
Cost of debt	4.00%	7.00%

After-tax WACC	5.2%	7.1%


Selected WACC	6.1%

526871.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 526871.BO:

cost_of_equity (10.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.31) + 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.