531210.BO WACC - Weighted Average Cost of Capital

The WACC of Colinz Laboratories Ltd (531210.BO) is 13.2%.

The Cost of Equity of Colinz Laboratories Ltd (531210.BO) is 13.50%.

The Cost of Debt of Colinz Laboratories Ltd (531210.BO) is 8.70%.

	Range	Selected
Cost of equity	12.20% - 14.80%	13.50%
Tax rate	22.20% - 24.30%	23.25%
Cost of debt	7.50% - 9.90%	8.70%
WACC	12.0% - 14.5%	13.2%

WACC

531210.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.65	0.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.20%	14.80%

Tax rate	22.20%	24.30%
Debt/Equity ratio	0.04	0.04
Cost of debt	7.50%	9.90%

After-tax WACC	12.0%	14.5%


Selected WACC	13.2%

531210.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 531210.BO:

cost_of_equity (13.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.65) + 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.