531215.BO WACC - Weighted Average Cost of Capital

The WACC of Rts Power Corporation Ltd (531215.BO) is 12.4%.

The Cost of Equity of Rts Power Corporation Ltd (531215.BO) is 13.80%.

The Cost of Debt of Rts Power Corporation Ltd (531215.BO) is 12.05%.

	Range	Selected
Cost of equity	12.50% - 15.10%	13.80%
Tax rate	29.20% - 31.80%	30.50%
Cost of debt	10.50% - 13.60%	12.05%
WACC	11.1% - 13.6%	12.4%

WACC

531215.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.67	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.50%	15.10%

Tax rate	29.20%	31.80%
Debt/Equity ratio	0.35	0.35
Cost of debt	10.50%	13.60%

After-tax WACC	11.1%	13.6%


Selected WACC	12.4%

531215.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 531215.BO:

cost_of_equity (13.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.67) + 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.