539275.BO WACC - Weighted Average Cost of Capital

The WACC of Mangalam Seeds Ltd (539275.BO) is 14.8%.

The Cost of Equity of Mangalam Seeds Ltd (539275.BO) is 16.50%.

The Cost of Debt of Mangalam Seeds Ltd (539275.BO) is 10.95%.

	Range	Selected
Cost of equity	14.90% - 18.10%	16.50%
Tax rate	15.50% - 16.60%	16.05%
Cost of debt	9.10% - 12.80%	10.95%
WACC	13.2% - 16.4%	14.8%

WACC

539275.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.96	1.1

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.90%	18.10%

Tax rate	15.50%	16.60%
Debt/Equity ratio	0.31	0.31
Cost of debt	9.10%	12.80%

After-tax WACC	13.2%	16.4%


Selected WACC	14.8%

539275.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 539275.BO:

cost_of_equity (16.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.96) + 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.