530723.BO WACC - Weighted Average Cost of Capital

The WACC of Asit C Mehta Financial Services Ltd (530723.BO) is 14.1%.

The Cost of Equity of Asit C Mehta Financial Services Ltd (530723.BO) is 12.65%.

The Cost of Debt of Asit C Mehta Financial Services Ltd (530723.BO) is 18.25%.

	Range	Selected
Cost of equity	10.40% - 14.90%	12.65%
Tax rate	10.00% - 16.80%	13.40%
Cost of debt	9.60% - 26.90%	18.25%
WACC	9.5% - 18.7%	14.1%

WACC

530723.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.43	0.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	14.90%

Tax rate	10.00%	16.80%
Debt/Equity ratio	1.03	1.03
Cost of debt	9.60%	26.90%

After-tax WACC	9.5%	18.7%


Selected WACC	14.1%

530723.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 530723.BO:

cost_of_equity (12.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.43) + 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.