534338.BO WACC - Weighted Average Cost of Capital

The WACC of Max Heights Infrastucture Ltd (534338.BO) is 12.5%.

The Cost of Equity of Max Heights Infrastucture Ltd (534338.BO) is 17.45%.

The Cost of Debt of Max Heights Infrastucture Ltd (534338.BO) is 13.95%.

	Range	Selected
Cost of equity	14.70% - 20.20%	17.45%
Tax rate	20.90% - 22.90%	21.90%
Cost of debt	4.00% - 23.90%	13.95%
WACC	6.1% - 18.8%	12.5%

WACC

534338.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.95	1.32

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.70%	20.20%

Tax rate	20.90%	22.90%
Debt/Equity ratio	2.96	2.96
Cost of debt	4.00%	23.90%

After-tax WACC	6.1%	18.8%


Selected WACC	12.5%

534338.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 534338.BO:

cost_of_equity (17.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.95) + 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.