539300.BO WACC - Weighted Average Cost of Capital

The WACC of AK Spintex Ltd (539300.BO) is 12.1%.

The Cost of Equity of AK Spintex Ltd (539300.BO) is 12.20%.

The Cost of Debt of AK Spintex Ltd (539300.BO) is 8.20%.

	Range	Selected
Cost of equity	10.60% - 13.80%	12.20%
Tax rate	24.40% - 25.90%	25.15%
Cost of debt	7.50% - 8.90%	8.20%
WACC	10.5% - 13.7%	12.1%

WACC

539300.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.44	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	13.80%

Tax rate	24.40%	25.90%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.50%	8.90%

After-tax WACC	10.5%	13.7%


Selected WACC	12.1%

539300.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 539300.BO:

cost_of_equity (12.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.44) + 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.