539354.BO WACC - Weighted Average Cost of Capital

The WACC of Polyspin Exports Ltd (539354.BO) is 12.5%.

The Cost of Equity of Polyspin Exports Ltd (539354.BO) is 25.35%.

The Cost of Debt of Polyspin Exports Ltd (539354.BO) is 9.15%.

	Range	Selected
Cost of equity	20.70% - 30.00%	25.35%
Tax rate	29.90% - 31.40%	30.65%
Cost of debt	6.20% - 12.10%	9.15%
WACC	9.7% - 15.4%	12.5%

WACC

539354.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.67	2.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.70%	30.00%

Tax rate	29.90%	31.40%
Debt/Equity ratio	2.07	2.07
Cost of debt	6.20%	12.10%

After-tax WACC	9.7%	15.4%


Selected WACC	12.5%

539354.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 539354.BO:

cost_of_equity (25.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.67) + 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.