530577.BO WACC - Weighted Average Cost of Capital

The WACC of Ladderup Finance Ltd (530577.BO) is 12.8%.

The Cost of Equity of Ladderup Finance Ltd (530577.BO) is 11.70%.

The Cost of Debt of Ladderup Finance Ltd (530577.BO) is 22.35%.

	Range	Selected
Cost of equity	10.30% - 13.10%	11.70%
Tax rate	30.10% - 33.40%	31.75%
Cost of debt	18.60% - 26.10%	22.35%
WACC	11.1% - 14.4%	12.8%

WACC

530577.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.42	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.30%	13.10%

Tax rate	30.10%	33.40%
Debt/Equity ratio	0.44	0.44
Cost of debt	18.60%	26.10%

After-tax WACC	11.1%	14.4%


Selected WACC	12.8%

530577.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 530577.BO:

cost_of_equity (11.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.42) + 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.