539939.BO WACC - Weighted Average Cost of Capital

The WACC of Yash Chemex Ltd (539939.BO) is 13.7%.

The Cost of Equity of Yash Chemex Ltd (539939.BO) is 14.80%.

The Cost of Debt of Yash Chemex Ltd (539939.BO) is 11.55%.

	Range	Selected
Cost of equity	12.80% - 16.80%	14.80%
Tax rate	26.40% - 28.20%	27.30%
Cost of debt	8.60% - 14.50%	11.55%
WACC	11.6% - 15.7%	13.7%

WACC

539939.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.71	0.96

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.80%	16.80%

Tax rate	26.40%	28.20%
Debt/Equity ratio	0.21	0.21
Cost of debt	8.60%	14.50%

After-tax WACC	11.6%	15.7%


Selected WACC	13.7%

539939.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 539939.BO:

cost_of_equity (14.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.71) + 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.