532656.BO
Facor Alloys Ltd
Price:  
3.68 
INR
Volume:  
131,027.00
India | Metals & Mining
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532656.BO WACC - Weighted Average Cost of Capital

The WACC of Facor Alloys Ltd (532656.BO) is 10.6%.

The Cost of Equity of Facor Alloys Ltd (532656.BO) is 11.15%.
The Cost of Debt of Facor Alloys Ltd (532656.BO) is 9.85%.

Range Selected
Cost of equity 10.10% - 12.20% 11.15%
Tax rate 30.00% - 30.00% 30.00%
Cost of debt 7.00% - 12.70% 9.85%
WACC 9.5% - 11.8% 10.6%
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 0.39 0.46
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.10% 12.20%
Tax rate 30.00% 30.00%
Debt/Equity ratio 0.13 0.13
Cost of debt 7.00% 12.70%
After-tax WACC 9.5% 11.8%
Selected WACC 10.6%

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 (11.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.39) + 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.