532701.BO WACC - Weighted Average Cost of Capital

The WACC of Cella Space Ltd (532701.BO) is 13.0%.

The Cost of Equity of Cella Space Ltd (532701.BO) is 15.35%.

The Cost of Debt of Cella Space Ltd (532701.BO) is 6.00%.

	Range	Selected
Cost of equity	13.80% - 16.90%	15.35%
Tax rate	1.90% - 3.60%	2.75%
Cost of debt	4.10% - 7.90%	6.00%
WACC	11.4% - 14.6%	13.0%

WACC

532701.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.84	0.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.80%	16.90%

Tax rate	1.90%	3.60%
Debt/Equity ratio	0.34	0.34
Cost of debt	4.10%	7.90%

After-tax WACC	11.4%	14.6%


Selected WACC	13.0%

532701.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 532701.BO:

cost_of_equity (15.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.84) + 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.