530643.BO WACC - Weighted Average Cost of Capital
The WACC of Eco Recycling Ltd (530643.BO) is 13.8%.
| Range | Selected | |
| Cost of equity | 12.4% - 16.1% | 14.25% |
| Tax rate | 10.0% - 14.2% | 12.1% |
| Cost of debt | 4.7% - 8.2% | 6.45% |
| WACC | 11.9% - 15.6% | 13.8% |
| Category | Low | High |
| Long-term bond rate | 7.5% | 8.0% |
| Equity market risk premium | 6.9% | 7.9% |
| Adjusted beta | 0.7 | 0.96 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.4% | 16.1% |
| Tax rate | 10.0% | 14.2% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 4.7% | 8.2% |
| After-tax WACC | 11.9% | 15.6% |
| Selected WACC | 13.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 530643.BO | Eco Recycling Ltd | 0.06 | 1.2 | 1.14 |
| 1AG.AX | Alterra Ltd | 4.37 | 0.9 | 0.18 |
| AWHCL.NS | Antony Waste Handling Cell Ltd | 0.23 | 1.9 | 1.57 |
| BANKA.NS | Banka BioLoo Ltd | 0.33 | 1.65 | 1.28 |
| BTECH.KL | Brite Tech Bhd | 0.84 | 0.4 | 0.23 |
| GENCO.BK | General Environmental Conservation PCL | 0.14 | 0.84 | 0.75 |
| HHHCORP.KL | Hiap Huat Holdings Bhd | 4.4 | 0.49 | 0.1 |
| LS9.SI | Leader Environmental Technologies Ltd | 0.33 | 0.15 | 0.11 |
| M8S.AX | M8 Sustainable Ltd | 2.79 | 3.55 | 1.02 |
| TEXCYCL.KL | Tex Cycle Technology (M) Bhd | 0.12 | 0.37 | 0.33 |
| Low | High | |
| Unlevered beta | 0.29 | 0.85 |
| Relevered beta | 0.55 | 0.94 |
| Adjusted relevered beta | 0.7 | 0.96 |
530643.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 530643.BO:
cost_of_equity (14.25%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (0.7) + 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.