539659.BO WACC - Weighted Average Cost of Capital

The WACC of Vidli Restaurants Ltd (539659.BO) is 12.5%.

The Cost of Equity of Vidli Restaurants Ltd (539659.BO) is 13.40%.

The Cost of Debt of Vidli Restaurants Ltd (539659.BO) is 12.90%.

	Range	Selected
Cost of equity	10.90% - 15.90%	13.40%
Tax rate	25.00% - 27.90%	26.45%
Cost of debt	7.50% - 18.30%	12.90%
WACC	9.6% - 15.3%	12.5%

WACC

539659.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.48	0.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	15.90%

Tax rate	25.00%	27.90%
Debt/Equity ratio	0.31	0.31
Cost of debt	7.50%	18.30%

After-tax WACC	9.6%	15.3%


Selected WACC	12.5%

539659.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 539659.BO:

cost_of_equity (13.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.48) + 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.