530545.BO WACC - Weighted Average Cost of Capital

The WACC of COSCO India Ltd (530545.BO) is 11.3%.

The Cost of Equity of COSCO India Ltd (530545.BO) is 12.95%.

The Cost of Debt of COSCO India Ltd (530545.BO) is 10.90%.

	Range	Selected
Cost of equity	11.10% - 14.80%	12.95%
Tax rate	24.30% - 26.40%	25.35%
Cost of debt	9.70% - 12.10%	10.90%
WACC	9.8% - 12.8%	11.3%

WACC

530545.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.51	0.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.10%	14.80%

Tax rate	24.30%	26.40%
Debt/Equity ratio	0.5	0.5
Cost of debt	9.70%	12.10%

After-tax WACC	9.8%	12.8%


Selected WACC	11.3%

530545.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 530545.BO:

cost_of_equity (12.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.51) + 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.