530499.BO WACC - Weighted Average Cost of Capital

The WACC of A K Capital Services Ltd (530499.BO) is 10.8%.

The Cost of Equity of A K Capital Services Ltd (530499.BO) is 29.80%.

The Cost of Debt of A K Capital Services Ltd (530499.BO) is 7.95%.

	Range	Selected
Cost of equity	23.80% - 35.80%	29.80%
Tax rate	23.70% - 24.10%	23.90%
Cost of debt	7.80% - 8.10%	7.95%
WACC	9.5% - 12.1%	10.8%

WACC

530499.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	2.03	3

Additional risk adjustments	0.0%	0.5%
Cost of equity	23.80%	35.80%

Tax rate	23.70%	24.10%
Debt/Equity ratio	4	4
Cost of debt	7.80%	8.10%

After-tax WACC	9.5%	12.1%


Selected WACC	10.8%

530499.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 530499.BO:

cost_of_equity (29.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (2.03) + 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.