530545.BO WACC - Weighted Average Cost of Capital

The WACC of COSCO India Ltd (530545.BO) is 12.2%.

The Cost of Equity of COSCO India Ltd (530545.BO) is 13.60%.

The Cost of Debt of COSCO India Ltd (530545.BO) is 14.10%.

	Range	Selected
Cost of equity	11.90% - 15.30%	13.60%
Tax rate	27.10% - 29.80%	28.45%
Cost of debt	9.60% - 18.60%	14.10%
WACC	10.0% - 14.4%	12.2%

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	0.61	0.8

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	15.30%

Tax rate	27.10%	29.80%
Debt/Equity ratio	0.64	0.64
Cost of debt	9.60%	18.60%

After-tax WACC	10.0%	14.4%


Selected WACC	12.2%

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 (13.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.61) + 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.