539195.BO WACC - Weighted Average Cost of Capital

The WACC of Pocl Enterprises Ltd (539195.BO) is 13.1%.

The Cost of Equity of Pocl Enterprises Ltd (539195.BO) is 14.25%.

The Cost of Debt of Pocl Enterprises Ltd (539195.BO) is 10.70%.

	Range	Selected
Cost of equity	12.40% - 16.10%	14.25%
Tax rate	22.00% - 25.10%	23.55%
Cost of debt	8.30% - 13.10%	10.70%
WACC	11.3% - 14.9%	13.1%

WACC

539195.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.67	0.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.40%	16.10%

Tax rate	22.00%	25.10%
Debt/Equity ratio	0.24	0.24
Cost of debt	8.30%	13.10%

After-tax WACC	11.3%	14.9%


Selected WACC	13.1%

539195.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 539195.BO:

cost_of_equity (14.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.67) + 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.