531289.BO WACC - Weighted Average Cost of Capital

The WACC of National Fittings Ltd (531289.BO) is 11.4%.

The Cost of Equity of National Fittings Ltd (531289.BO) is 12.15%.

The Cost of Debt of National Fittings Ltd (531289.BO) is 6.90%.

	Range	Selected
Cost of equity	9.80% - 14.50%	12.15%
Tax rate	24.20% - 28.40%	26.30%
Cost of debt	5.90% - 7.90%	6.90%
WACC	9.2% - 13.6%	11.4%

WACC

531289.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.35	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	14.50%

Tax rate	24.20%	28.40%
Debt/Equity ratio	0.12	0.12
Cost of debt	5.90%	7.90%

After-tax WACC	9.2%	13.6%


Selected WACC	11.4%

531289.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 531289.BO:

cost_of_equity (12.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.35) + 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.