526945.BO WACC - Weighted Average Cost of Capital

The WACC of Tyroon Tea Co Ltd (526945.BO) is 14.5%.

The Cost of Equity of Tyroon Tea Co Ltd (526945.BO) is 14.60%.

The Cost of Debt of Tyroon Tea Co Ltd (526945.BO) is 7.60%.

	Range	Selected
Cost of equity	13.00% - 16.20%	14.60%
Tax rate	11.30% - 12.90%	12.10%
Cost of debt	7.00% - 8.20%	7.60%
WACC	13.0% - 16.1%	14.5%

WACC

526945.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.74	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.00%	16.20%

Tax rate	11.30%	12.90%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.00%	8.20%

After-tax WACC	13.0%	16.1%


Selected WACC	14.5%

526945.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 526945.BO:

cost_of_equity (14.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.74) + 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.