534338.BO WACC - Weighted Average Cost of Capital

The WACC of Max Heights Infrastucture Ltd (534338.BO) is 6.5%.

The Cost of Equity of Max Heights Infrastucture Ltd (534338.BO) is 11.90%.

The Cost of Debt of Max Heights Infrastucture Ltd (534338.BO) is 5.50%.

	Range	Selected
Cost of equity	10.70% - 13.10%	11.90%
Tax rate	12.40% - 20.50%	16.45%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.4% - 7.6%	6.5%

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	0.46	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.70%	13.10%

Tax rate	12.40%	20.50%
Debt/Equity ratio	2.77	2.77
Cost of debt	4.00%	7.00%

After-tax WACC	5.4%	7.6%


Selected WACC	6.5%

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 (11.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.46) + 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.