539991.BO WACC - Weighted Average Cost of Capital

The WACC of Confidence Futuristic Energetech Ltd (539991.BO) is 10.7%.

The Cost of Equity of Confidence Futuristic Energetech Ltd (539991.BO) is 11.90%.

The Cost of Debt of Confidence Futuristic Energetech Ltd (539991.BO) is 9.30%.

	Range	Selected
Cost of equity	10.70% - 13.10%	11.90%
Tax rate	24.20% - 25.40%	24.80%
Cost of debt	6.50% - 12.10%	9.30%
WACC	9.3% - 12.1%	10.7%

WACC

539991.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.46	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.70%	13.10%

Tax rate	24.20%	25.40%
Debt/Equity ratio	0.33	0.33
Cost of debt	6.50%	12.10%

After-tax WACC	9.3%	12.1%


Selected WACC	10.7%

539991.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 539991.BO:

cost_of_equity (11.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.46) + 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.