532656.BO WACC - Weighted Average Cost of Capital

The WACC of Facor Alloys Ltd (532656.BO) is 11.1%.

The Cost of Equity of Facor Alloys Ltd (532656.BO) is 11.20%.

The Cost of Debt of Facor Alloys Ltd (532656.BO) is 15.35%.

	Range	Selected
Cost of equity	10.40% - 12.00%	11.20%
Tax rate	28.40% - 31.40%	29.90%
Cost of debt	8.30% - 22.40%	15.35%
WACC	9.7% - 12.5%	11.1%

WACC

532656.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.42	0.44

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	12.00%

Tax rate	28.40%	31.40%
Debt/Equity ratio	0.17	0.17
Cost of debt	8.30%	22.40%

After-tax WACC	9.7%	12.5%


Selected WACC	11.1%

532656.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 532656.BO:

cost_of_equity (11.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.42) + 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.