538715.BO WACC - Weighted Average Cost of Capital

The WACC of Dhabriya Polywood Ltd (538715.BO) is 12.6%.

The Cost of Equity of Dhabriya Polywood Ltd (538715.BO) is 13.45%.

The Cost of Debt of Dhabriya Polywood Ltd (538715.BO) is 8.15%.

	Range	Selected
Cost of equity	11.40% - 15.50%	13.45%
Tax rate	25.90% - 27.20%	26.55%
Cost of debt	7.90% - 8.40%	8.15%
WACC	10.8% - 14.4%	12.6%

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	0.55	0.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.40%	15.50%

Tax rate	25.90%	27.20%
Debt/Equity ratio	0.13	0.13
Cost of debt	7.90%	8.40%

After-tax WACC	10.8%	14.4%


Selected WACC	12.6%

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 (13.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.55) + 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.