531667.BO WACC - Weighted Average Cost of Capital

The WACC of RR Metalmakers India Ltd (531667.BO) is 14.1%.

The Cost of Equity of RR Metalmakers India Ltd (531667.BO) is 16.45%.

The Cost of Debt of RR Metalmakers India Ltd (531667.BO) is 13.50%.

	Range	Selected
Cost of equity	14.60% - 18.30%	16.45%
Tax rate	15.80% - 26.80%	21.30%
Cost of debt	12.10% - 14.90%	13.50%
WACC	12.8% - 15.3%	14.1%

WACC

531667.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.93	1.13

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.60%	18.30%

Tax rate	15.80%	26.80%
Debt/Equity ratio	0.67	0.67
Cost of debt	12.10%	14.90%

After-tax WACC	12.8%	15.3%


Selected WACC	14.1%

531667.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 531667.BO:

cost_of_equity (16.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.93) + 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.