532140.BO WACC - Weighted Average Cost of Capital

The WACC of Mohite Industries Ltd (532140.BO) is 14.4%.

The Cost of Equity of Mohite Industries Ltd (532140.BO) is 13.90%.

The Cost of Debt of Mohite Industries Ltd (532140.BO) is 15.60%.

	Range	Selected
Cost of equity	12.40% - 15.40%	13.90%
Tax rate	5.60% - 7.00%	6.30%
Cost of debt	15.40% - 15.80%	15.60%
WACC	13.7% - 15.0%	14.4%

WACC

532140.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.67	0.8

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.40%	15.40%

Tax rate	5.60%	7.00%
Debt/Equity ratio	1.73	1.73
Cost of debt	15.40%	15.80%

After-tax WACC	13.7%	15.0%


Selected WACC	14.4%

532140.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 532140.BO:

cost_of_equity (13.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.67) + 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.