537069.BO WACC - Weighted Average Cost of Capital

The WACC of Arnold Holdings Ltd (537069.BO) is 11.5%.

The Cost of Equity of Arnold Holdings Ltd (537069.BO) is 16.35%.

The Cost of Debt of Arnold Holdings Ltd (537069.BO) is 8.10%.

	Range	Selected
Cost of equity	13.90% - 18.80%	16.35%
Tax rate	26.30% - 27.10%	26.70%
Cost of debt	8.10% - 8.10%	8.10%
WACC	10.2% - 12.8%	11.5%

WACC

537069.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.85	1.18

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.90%	18.80%

Tax rate	26.30%	27.10%
Debt/Equity ratio	0.86	0.86
Cost of debt	8.10%	8.10%

After-tax WACC	10.2%	12.8%


Selected WACC	11.5%

537069.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 537069.BO:

cost_of_equity (16.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.85) + 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.