530169.BO WACC - Weighted Average Cost of Capital

The WACC of Mohit Paper Mills Ltd (530169.BO) is 12.3%.

The Cost of Equity of Mohit Paper Mills Ltd (530169.BO) is 20.75%.

The Cost of Debt of Mohit Paper Mills Ltd (530169.BO) is 10.60%.

	Range	Selected
Cost of equity	15.30% - 26.20%	20.75%
Tax rate	29.40% - 29.90%	29.65%
Cost of debt	10.50% - 10.70%	10.60%
WACC	10.3% - 14.3%	12.3%

WACC

530169.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.01	1.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.30%	26.20%

Tax rate	29.40%	29.90%
Debt/Equity ratio	1.74	1.74
Cost of debt	10.50%	10.70%

After-tax WACC	10.3%	14.3%


Selected WACC	12.3%

530169.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 530169.BO:

cost_of_equity (20.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.01) + 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.