538715.BO WACC - Weighted Average Cost of Capital

The WACC of Dhabriya Polywood Ltd (538715.BO) is 13.4%.

The Cost of Equity of Dhabriya Polywood Ltd (538715.BO) is 14.50%.

The Cost of Debt of Dhabriya Polywood Ltd (538715.BO) is 8.35%.

	Range	Selected
Cost of equity	12.50% - 16.50%	14.50%
Tax rate	26.60% - 27.90%	27.25%
Cost of debt	8.10% - 8.60%	8.35%
WACC	11.6% - 15.1%	13.4%

WACC

538715.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.68	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.50%	16.50%

Tax rate	26.60%	27.90%
Debt/Equity ratio	0.15	0.15
Cost of debt	8.10%	8.60%

After-tax WACC	11.6%	15.1%


Selected WACC	13.4%

538715.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 538715.BO:

cost_of_equity (14.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.68) + 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.