531900.BO WACC - Weighted Average Cost of Capital

The WACC of CCL International Ltd (531900.BO) is 13.0%.

The Cost of Equity of CCL International Ltd (531900.BO) is 14.20%.

The Cost of Debt of CCL International Ltd (531900.BO) is 13.75%.

	Range	Selected
Cost of equity	11.80% - 16.60%	14.20%
Tax rate	16.70% - 27.50%	22.10%
Cost of debt	8.90% - 18.60%	13.75%
WACC	10.4% - 15.6%	13.0%

WACC

531900.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.59	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	16.60%

Tax rate	16.70%	27.50%
Debt/Equity ratio	0.49	0.49
Cost of debt	8.90%	18.60%

After-tax WACC	10.4%	15.6%


Selected WACC	13.0%

531900.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 531900.BO:

cost_of_equity (14.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.59) + 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.