538446.BO WACC - Weighted Average Cost of Capital

The WACC of Moneyboxx Finance Ltd (538446.BO) is 11.8%.

The Cost of Equity of Moneyboxx Finance Ltd (538446.BO) is 11.80%.

The Cost of Debt of Moneyboxx Finance Ltd (538446.BO) is 15.80%.

	Range	Selected
Cost of equity	9.80% - 13.80%	11.80%
Tax rate	19.50% - 26.70%	23.10%
Cost of debt	4.70% - 26.90%	15.80%
WACC	7.4% - 16.1%	11.8%

WACC

538446.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.35	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	13.80%

Tax rate	19.50%	26.70%
Debt/Equity ratio	0.66	0.66
Cost of debt	4.70%	26.90%

After-tax WACC	7.4%	16.1%


Selected WACC	11.8%

538446.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 538446.BO:

cost_of_equity (11.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.35) + 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.