539800.BO WACC - Weighted Average Cost of Capital

The WACC of CHD CHEMICALS Ltd (539800.BO) is 11.6%.

The Cost of Equity of CHD CHEMICALS Ltd (539800.BO) is 13.30%.

The Cost of Debt of CHD CHEMICALS Ltd (539800.BO) is 15.50%.

	Range	Selected
Cost of equity	10.80% - 15.80%	13.30%
Tax rate	25.20% - 34.10%	29.65%
Cost of debt	4.10% - 26.90%	15.50%
WACC	6.4% - 16.9%	11.6%

WACC

539800.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	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.80%	15.80%

Tax rate	25.20%	34.10%
Debt/Equity ratio	1.33	1.33
Cost of debt	4.10%	26.90%

After-tax WACC	6.4%	16.9%


Selected WACC	11.6%

539800.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 539800.BO:

cost_of_equity (13.30%) = 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.