539837.BO WACC - Weighted Average Cost of Capital

The WACC of Raghav Productivity Enhancers Ltd (539837.BO) is 14.0%.

The Cost of Equity of Raghav Productivity Enhancers Ltd (539837.BO) is 13.85%.

The Cost of Debt of Raghav Productivity Enhancers Ltd (539837.BO) is 84.00%.

	Range	Selected
Cost of equity	11.50% - 16.20%	13.85%
Tax rate	25.10% - 25.20%	25.15%
Cost of debt	7.50% - 160.50%	84.00%
WACC	11.5% - 16.5%	14.0%

WACC

539837.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.56	0.9

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.50%	16.20%

Tax rate	25.10%	25.20%
Debt/Equity ratio	0	0
Cost of debt	7.50%	160.50%

After-tax WACC	11.5%	16.5%


Selected WACC	14.0%

539837.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 539837.BO:

cost_of_equity (13.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.56) + 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.