534691.BO WACC - Weighted Average Cost of Capital

The WACC of Comfort Commotrade Ltd (534691.BO) is 16.5%.

The Cost of Equity of Comfort Commotrade Ltd (534691.BO) is 15.35%.

The Cost of Debt of Comfort Commotrade Ltd (534691.BO) is 30.25%.

	Range	Selected
Cost of equity	13.20% - 17.50%	15.35%
Tax rate	21.70% - 29.60%	25.65%
Cost of debt	7.50% - 53.00%	30.25%
WACC	11.9% - 21.1%	16.5%

WACC

534691.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.77	1.04

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.20%	17.50%

Tax rate	21.70%	29.60%
Debt/Equity ratio	0.22	0.22
Cost of debt	7.50%	53.00%

After-tax WACC	11.9%	21.1%


Selected WACC	16.5%

534691.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 534691.BO:

cost_of_equity (15.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.77) + 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.