534732.BO WACC - Weighted Average Cost of Capital

The WACC of Intellivate Capital Advisors Ltd (534732.BO) is 13.3%.

The Cost of Equity of Intellivate Capital Advisors Ltd (534732.BO) is 11.80%.

The Cost of Debt of Intellivate Capital Advisors Ltd (534732.BO) is 23.90%.

	Range	Selected
Cost of equity	9.30% - 14.30%	11.80%
Tax rate	26.20% - 28.30%	27.25%
Cost of debt	23.90% - 23.90%	23.90%
WACC	11.6% - 15.1%	13.3%

WACC

534732.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.3	0.69

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	14.30%

Tax rate	26.20%	28.30%
Debt/Equity ratio	0.38	0.38
Cost of debt	23.90%	23.90%

After-tax WACC	11.6%	15.1%


Selected WACC	13.3%

534732.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 534732.BO:

cost_of_equity (11.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.3) + 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.