540360.BO WACC - Weighted Average Cost of Capital

The WACC of Leading Leasing Finance and Investment Company Ltd (540360.BO) is 10.7%.

The Cost of Equity of Leading Leasing Finance and Investment Company Ltd (540360.BO) is 13.05%.

The Cost of Debt of Leading Leasing Finance and Investment Company Ltd (540360.BO) is 12.30%.

	Range	Selected
Cost of equity	11.60% - 14.50%	13.05%
Tax rate	26.60% - 27.70%	27.15%
Cost of debt	6.00% - 18.60%	12.30%
WACC	7.5% - 13.9%	10.7%

WACC

540360.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.57	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.60%	14.50%

Tax rate	26.60%	27.70%
Debt/Equity ratio	1.3	1.3
Cost of debt	6.00%	18.60%

After-tax WACC	7.5%	13.9%


Selected WACC	10.7%

540360.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 540360.BO:

cost_of_equity (13.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.57) + 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.