526945.BO WACC - Weighted Average Cost of Capital

The WACC of Tyroon Tea Co Ltd (526945.BO) is 12.3%.

The Cost of Equity of Tyroon Tea Co Ltd (526945.BO) is 13.10%.

The Cost of Debt of Tyroon Tea Co Ltd (526945.BO) is 8.15%.

	Range	Selected
Cost of equity	11.80% - 14.40%	13.10%
Tax rate	13.60% - 16.10%	14.85%
Cost of debt	7.80% - 8.50%	8.15%
WACC	11.1% - 13.5%	12.3%

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	0.6	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	14.40%

Tax rate	13.60%	16.10%
Debt/Equity ratio	0.16	0.16
Cost of debt	7.80%	8.50%

After-tax WACC	11.1%	13.5%


Selected WACC	12.3%

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 (13.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.6) + 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.