539122.BO WACC - Weighted Average Cost of Capital

The WACC of Bodhtree Consulting Ltd (539122.BO) is 12.0%.

The Cost of Equity of Bodhtree Consulting Ltd (539122.BO) is 11.90%.

The Cost of Debt of Bodhtree Consulting Ltd (539122.BO) is 26.90%.

	Range	Selected
Cost of equity	10.10% - 13.70%	11.90%
Tax rate	10.40% - 28.00%	19.20%
Cost of debt	26.90% - 26.90%	26.90%
WACC	10.2% - 13.8%	12.0%

WACC

539122.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.39	0.63

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.10%	13.70%

Tax rate	10.40%	28.00%
Debt/Equity ratio	0.01	0.01
Cost of debt	26.90%	26.90%

After-tax WACC	10.2%	13.8%


Selected WACC	12.0%

539122.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 539122.BO:

cost_of_equity (11.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.39) + 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.