539391.BO WACC - Weighted Average Cost of Capital

The WACC of Acme Resources Ltd (539391.BO) is 10.7%.

The Cost of Equity of Acme Resources Ltd (539391.BO) is 11.35%.

The Cost of Debt of Acme Resources Ltd (539391.BO) is 6.20%.

	Range	Selected
Cost of equity	10.50% - 12.20%	11.35%
Tax rate	26.80% - 30.90%	28.85%
Cost of debt	4.90% - 7.50%	6.20%
WACC	9.8% - 11.5%	10.7%

WACC

539391.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	0.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	12.20%

Tax rate	26.80%	30.90%
Debt/Equity ratio	0.11	0.11
Cost of debt	4.90%	7.50%

After-tax WACC	9.8%	11.5%


Selected WACC	10.7%

539391.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 539391.BO:

cost_of_equity (11.35%) = 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.