531739.BO WACC - Weighted Average Cost of Capital

The WACC of Gennex Laboratories Ltd (531739.BO) is 14.2%.

The Cost of Equity of Gennex Laboratories Ltd (531739.BO) is 14.55%.

The Cost of Debt of Gennex Laboratories Ltd (531739.BO) is 11.15%.

	Range	Selected
Cost of equity	12.90% - 16.20%	14.55%
Tax rate	21.80% - 22.90%	22.35%
Cost of debt	7.80% - 14.50%	11.15%
WACC	12.5% - 15.9%	14.2%

WACC

531739.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.73	0.9

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.90%	16.20%

Tax rate	21.80%	22.90%
Debt/Equity ratio	0.06	0.06
Cost of debt	7.80%	14.50%

After-tax WACC	12.5%	15.9%


Selected WACC	14.2%

531739.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 531739.BO:

cost_of_equity (14.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.73) + 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.