540148.BO WACC - Weighted Average Cost of Capital

The WACC of Bindal Exports Ltd (540148.BO) is 11.1%.

The Cost of Equity of Bindal Exports Ltd (540148.BO) is 11.15%.

The Cost of Debt of Bindal Exports Ltd (540148.BO) is 12.95%.

	Range	Selected
Cost of equity	9.50% - 12.80%	11.15%
Tax rate	14.00% - 16.60%	15.30%
Cost of debt	12.10% - 13.80%	12.95%
WACC	9.8% - 12.5%	11.1%

WACC

540148.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.32	0.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.50%	12.80%

Tax rate	14.00%	16.60%
Debt/Equity ratio	0.34	0.34
Cost of debt	12.10%	13.80%

After-tax WACC	9.8%	12.5%


Selected WACC	11.1%

540148.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 540148.BO:

cost_of_equity (11.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.32) + 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.