539662.BO WACC - Weighted Average Cost of Capital

The WACC of BFL Asset Finvest Ltd (539662.BO) is 13.2%.

The Cost of Equity of BFL Asset Finvest Ltd (539662.BO) is 15.40%.

The Cost of Debt of BFL Asset Finvest Ltd (539662.BO) is 9.60%.

	Range	Selected
Cost of equity	13.90% - 16.90%	15.40%
Tax rate	25.20% - 40.30%	32.75%
Cost of debt	7.50% - 11.70%	9.60%
WACC	11.8% - 14.5%	13.2%

WACC

539662.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.84	0.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.90%	16.90%

Tax rate	25.20%	40.30%
Debt/Equity ratio	0.32	0.32
Cost of debt	7.50%	11.70%

After-tax WACC	11.8%	14.5%


Selected WACC	13.2%

539662.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 539662.BO:

cost_of_equity (15.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.84) + 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.