534731.BO WACC - Weighted Average Cost of Capital

The WACC of Bronze Infra-Tech Ltd (534731.BO) is 12.1%.

The Cost of Equity of Bronze Infra-Tech Ltd (534731.BO) is 17.05%.

The Cost of Debt of Bronze Infra-Tech Ltd (534731.BO) is 7.50%.

	Range	Selected
Cost of equity	12.60% - 21.50%	17.05%
Tax rate	0.40% - 12.80%	6.60%
Cost of debt	7.50% - 7.50%	7.50%
WACC	10.0% - 14.1%	12.1%

WACC

534731.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.69	1.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.60%	21.50%

Tax rate	0.40%	12.80%
Debt/Equity ratio	0.97	0.97
Cost of debt	7.50%	7.50%

After-tax WACC	10.0%	14.1%


Selected WACC	12.1%

534731.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 534731.BO:

cost_of_equity (17.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.69) + 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.