532410.BO WACC - Weighted Average Cost of Capital

The WACC of Transcorp International Ltd (532410.BO) is 11.2%.

The Cost of Equity of Transcorp International Ltd (532410.BO) is 11.90%.

The Cost of Debt of Transcorp International Ltd (532410.BO) is 15.85%.

	Range	Selected
Cost of equity	10.60% - 13.20%	11.90%
Tax rate	26.60% - 49.90%	38.25%
Cost of debt	7.80% - 23.90%	15.85%
WACC	9.5% - 12.9%	11.2%

WACC

532410.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.45	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	13.20%

Tax rate	26.60%	49.90%
Debt/Equity ratio	0.31	0.31
Cost of debt	7.80%	23.90%

After-tax WACC	9.5%	12.9%


Selected WACC	11.2%

532410.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 532410.BO:

cost_of_equity (11.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.45) + 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.