533289.BO WACC - Weighted Average Cost of Capital

The WACC of Kesar Terminals & Infrastructure Ltd (533289.BO) is 12.1%.

The Cost of Equity of Kesar Terminals & Infrastructure Ltd (533289.BO) is 13.55%.

The Cost of Debt of Kesar Terminals & Infrastructure Ltd (533289.BO) is 11.30%.

	Range	Selected
Cost of equity	11.70% - 15.40%	13.55%
Tax rate	6.70% - 8.40%	7.55%
Cost of debt	4.00% - 18.60%	11.30%
WACC	8.1% - 16.2%	12.1%

WACC

533289.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.58	0.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.70%	15.40%

Tax rate	6.70%	8.40%
Debt/Equity ratio	0.82	0.82
Cost of debt	4.00%	18.60%

After-tax WACC	8.1%	16.2%


Selected WACC	12.1%

533289.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 533289.BO:

cost_of_equity (13.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.58) + 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.