532407.BO WACC - Weighted Average Cost of Capital

The WACC of Moschip Technologies Ltd (532407.BO) is 14.8%.

The Cost of Equity of Moschip Technologies Ltd (532407.BO) is 14.95%.

The Cost of Debt of Moschip Technologies Ltd (532407.BO) is 10.35%.

	Range	Selected
Cost of equity	13.10% - 16.80%	14.95%
Tax rate	0.80% - 0.90%	0.85%
Cost of debt	8.10% - 12.60%	10.35%
WACC	13.0% - 16.7%	14.8%

WACC

532407.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.75	0.96

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.10%	16.80%

Tax rate	0.80%	0.90%
Debt/Equity ratio	0.02	0.02
Cost of debt	8.10%	12.60%

After-tax WACC	13.0%	16.7%


Selected WACC	14.8%

532407.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 532407.BO:

cost_of_equity (14.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.75) + 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.