530499.BO WACC - Weighted Average Cost of Capital

The WACC of A K Capital Services Ltd (530499.BO) is 14.0%.

The Cost of Equity of A K Capital Services Ltd (530499.BO) is 30.80%.

The Cost of Debt of A K Capital Services Ltd (530499.BO) is 13.10%.

	Range	Selected
Cost of equity	24.20% - 37.40%	30.80%
Tax rate	23.70% - 24.10%	23.90%
Cost of debt	7.60% - 18.60%	13.10%
WACC	9.3% - 18.6%	14.0%

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	2.09	3.17

Additional risk adjustments	0.0%	0.5%
Cost of equity	24.20%	37.40%

Tax rate	23.70%	24.10%
Debt/Equity ratio	4.17	4.17
Cost of debt	7.60%	18.60%

After-tax WACC	9.3%	18.6%


Selected WACC	14.0%

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 (30.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (2.09) + 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.