533202.BO WACC - Weighted Average Cost of Capital

The WACC of Nel Holdings South Ltd (533202.BO) is 15.6%.

The Cost of Equity of Nel Holdings South Ltd (533202.BO) is 23.15%.

The Cost of Debt of Nel Holdings South Ltd (533202.BO) is 16.55%.

	Range	Selected
Cost of equity	17.60% - 28.70%	23.15%
Tax rate	7.40% - 7.50%	7.45%
Cost of debt	6.20% - 26.90%	16.55%
WACC	6.1% - 25.0%	15.6%

WACC

533202.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.29	2.24

Additional risk adjustments	0.0%	0.5%
Cost of equity	17.60%	28.70%

Tax rate	7.40%	7.50%
Debt/Equity ratio	29.57	29.57
Cost of debt	6.20%	26.90%

After-tax WACC	6.1%	25.0%


Selected WACC	15.6%

533202.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 533202.BO:

cost_of_equity (23.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.29) + 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.