538446.BO WACC - Weighted Average Cost of Capital

The WACC of Moneyboxx Finance Ltd (538446.BO) is 13.3%.

The Cost of Equity of Moneyboxx Finance Ltd (538446.BO) is 11.95%.

The Cost of Debt of Moneyboxx Finance Ltd (538446.BO) is 22.35%.

	Range	Selected
Cost of equity	9.80% - 14.10%	11.95%
Tax rate	28.30% - 36.10%	32.20%
Cost of debt	17.80% - 26.90%	22.35%
WACC	11.1% - 15.5%	13.3%

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	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	14.10%

Tax rate	28.30%	36.10%
Debt/Equity ratio	0.78	0.78
Cost of debt	17.80%	26.90%

After-tax WACC	11.1%	15.5%


Selected WACC	13.3%

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 (11.95%) = 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.