531950.BO WACC - Weighted Average Cost of Capital

The WACC of Vertex Securities Ltd (531950.BO) is 13.4%.

The Cost of Equity of Vertex Securities Ltd (531950.BO) is 14.20%.

The Cost of Debt of Vertex Securities Ltd (531950.BO) is 11.90%.

	Range	Selected
Cost of equity	12.90% - 15.50%	14.20%
Tax rate	30.00% - 30.00%	30.00%
Cost of debt	8.60% - 15.20%	11.90%
WACC	12.0% - 14.9%	13.4%

WACC

531950.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.72	0.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.90%	15.50%

Tax rate	30.00%	30.00%
Debt/Equity ratio	0.16	0.16
Cost of debt	8.60%	15.20%

After-tax WACC	12.0%	14.9%


Selected WACC	13.4%

531950.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 531950.BO:

cost_of_equity (14.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.72) + 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.