532022.BO WACC - Weighted Average Cost of Capital

The WACC of Filatex Fashions Ltd (532022.BO) is 13.8%.

The Cost of Equity of Filatex Fashions Ltd (532022.BO) is 10.80%.

The Cost of Debt of Filatex Fashions Ltd (532022.BO) is 140.25%.

	Range	Selected
Cost of equity	9.80% - 11.80%	10.80%
Tax rate	27.10% - 28.30%	27.70%
Cost of debt	8.20% - 272.30%	140.25%
WACC	9.7% - 18.0%	13.8%

WACC

532022.BO WACC calculation

Category	Low	High

Long-term bond rate	7.1%	7.6%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.33	0.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	11.80%

Tax rate	27.10%	28.30%
Debt/Equity ratio	0.03	0.03
Cost of debt	8.20%	272.30%

After-tax WACC	9.7%	18.0%


Selected WACC	13.8%

532022.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 532022.BO:

cost_of_equity (10.80%) = risk_free_rate (7.35%) + equity_risk_premium (8.80%) * adjusted_beta (0.33) + 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.