533167.BO WACC - Weighted Average Cost of Capital

The WACC of Coromandel Engineering Company Ltd (533167.BO) is 11.6%.

The Cost of Equity of Coromandel Engineering Company Ltd (533167.BO) is 12.05%.

The Cost of Debt of Coromandel Engineering Company Ltd (533167.BO) is 9.85%.

	Range	Selected
Cost of equity	10.50% - 13.60%	12.05%
Tax rate	19.70% - 29.40%	24.55%
Cost of debt	7.60% - 12.10%	9.85%
WACC	10.1% - 13.0%	11.6%

WACC

533167.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.44	0.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	13.60%

Tax rate	19.70%	29.40%
Debt/Equity ratio	0.11	0.11
Cost of debt	7.60%	12.10%

After-tax WACC	10.1%	13.0%


Selected WACC	11.6%

533167.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 533167.BO:

cost_of_equity (12.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.44) + 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.