539275.BO WACC - Weighted Average Cost of Capital

The WACC of Mangalam Seeds Ltd (539275.BO) is 12.1%.

The Cost of Equity of Mangalam Seeds Ltd (539275.BO) is 13.95%.

The Cost of Debt of Mangalam Seeds Ltd (539275.BO) is 9.95%.

	Range	Selected
Cost of equity	11.80% - 16.10%	13.95%
Tax rate	16.70% - 17.10%	16.90%
Cost of debt	8.30% - 11.60%	9.95%
WACC	10.2% - 13.9%	12.1%

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	0.6	0.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	16.10%

Tax rate	16.70%	17.10%
Debt/Equity ratio	0.5	0.5
Cost of debt	8.30%	11.60%

After-tax WACC	10.2%	13.9%


Selected WACC	12.1%

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 (13.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.6) + 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.