536868.BO WACC - Weighted Average Cost of Capital

The WACC of Integra Telecommunication and Software Ltd (536868.BO) is 12.8%.

The Cost of Equity of Integra Telecommunication and Software Ltd (536868.BO) is 13.25%.

The Cost of Debt of Integra Telecommunication and Software Ltd (536868.BO) is 9.10%.

	Range	Selected
Cost of equity	11.20% - 15.30%	13.25%
Tax rate	-% - 4.40%	2.20%
Cost of debt	9.10% - 9.10%	9.10%
WACC	11.0% - 14.6%	12.8%

WACC

536868.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.53	0.8

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.20%	15.30%

Tax rate	-%	4.40%
Debt/Equity ratio	0.11	0.11
Cost of debt	9.10%	9.10%

After-tax WACC	11.0%	14.6%


Selected WACC	12.8%

536868.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 536868.BO:

cost_of_equity (13.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.53) + 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.