539986.BO WACC - Weighted Average Cost of Capital

The WACC of Commercial Syn Bags Ltd (539986.BO) is 12.5%.

The Cost of Equity of Commercial Syn Bags Ltd (539986.BO) is 13.40%.

The Cost of Debt of Commercial Syn Bags Ltd (539986.BO) is 10.25%.

	Range	Selected
Cost of equity	11.50% - 15.30%	13.40%
Tax rate	16.20% - 18.80%	17.50%
Cost of debt	7.30% - 13.20%	10.25%
WACC	10.5% - 14.5%	12.5%

WACC

539986.BO WACC calculation

Category	Low	High

Long-term bond rate	7.2%	7.7%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.51	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.50%	15.30%

Tax rate	16.20%	18.80%
Debt/Equity ratio	0.22	0.22
Cost of debt	7.30%	13.20%

After-tax WACC	10.5%	14.5%


Selected WACC	12.5%

539986.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 539986.BO:

cost_of_equity (13.40%) = risk_free_rate (7.45%) + equity_risk_premium (8.80%) * adjusted_beta (0.51) + 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.