539042.BO WACC - Weighted Average Cost of Capital

The WACC of AGI Infra Ltd (539042.BO) is 11.5%.

The Cost of Equity of AGI Infra Ltd (539042.BO) is 11.75%.

The Cost of Debt of AGI Infra Ltd (539042.BO) is 9.50%.

	Range	Selected
Cost of equity	10.20% - 13.30%	11.75%
Tax rate	16.60% - 17.10%	16.85%
Cost of debt	7.80% - 11.20%	9.50%
WACC	10.0% - 13.0%	11.5%

WACC

539042.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.4	0.58

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	13.30%

Tax rate	16.60%	17.10%
Debt/Equity ratio	0.07	0.07
Cost of debt	7.80%	11.20%

After-tax WACC	10.0%	13.0%


Selected WACC	11.5%

539042.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 539042.BO:

cost_of_equity (11.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.4) + 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.