531471.BO WACC - Weighted Average Cost of Capital

The WACC of Duke Offshore Ltd (531471.BO) is 12.7%.

The Cost of Equity of Duke Offshore Ltd (531471.BO) is 12.80%.

The Cost of Debt of Duke Offshore Ltd (531471.BO) is 7.55%.

	Range	Selected
Cost of equity	11.30% - 14.30%	12.80%
Tax rate	24.80% - 45.50%	35.15%
Cost of debt	7.00% - 8.10%	7.55%
WACC	11.2% - 14.2%	12.7%

WACC

531471.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.53	0.69

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	14.30%

Tax rate	24.80%	45.50%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.00%	8.10%

After-tax WACC	11.2%	14.2%


Selected WACC	12.7%

531471.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 531471.BO:

cost_of_equity (12.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.53) + 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.