539112.BO WACC - Weighted Average Cost of Capital

The WACC of SAB Industries Ltd (539112.BO) is 11.1%.

The Cost of Equity of SAB Industries Ltd (539112.BO) is 11.10%.

The Cost of Debt of SAB Industries Ltd (539112.BO) is 11.60%.

	Range	Selected
Cost of equity	10.30% - 11.90%	11.10%
Tax rate	1.20% - 4.50%	2.85%
Cost of debt	7.80% - 15.40%	11.60%
WACC	9.7% - 12.6%	11.1%

WACC

539112.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.41	0.44

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.30%	11.90%

Tax rate	1.20%	4.50%
Debt/Equity ratio	0.33	0.33
Cost of debt	7.80%	15.40%

After-tax WACC	9.7%	12.6%


Selected WACC	11.1%

539112.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 539112.BO:

cost_of_equity (11.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.41) + 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.