540717.BO WACC - Weighted Average Cost of Capital

The WACC of Polo Queen Industrial and Fintech Ltd (540717.BO) is 13.6%.

The Cost of Equity of Polo Queen Industrial and Fintech Ltd (540717.BO) is 13.70%.

The Cost of Debt of Polo Queen Industrial and Fintech Ltd (540717.BO) is 10.35%.

	Range	Selected
Cost of equity	11.50% - 15.90%	13.70%
Tax rate	26.50% - 28.70%	27.60%
Cost of debt	9.10% - 11.60%	10.35%
WACC	11.5% - 15.8%	13.6%

WACC

540717.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.56	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.50%	15.90%

Tax rate	26.50%	28.70%
Debt/Equity ratio	0.01	0.01
Cost of debt	9.10%	11.60%

After-tax WACC	11.5%	15.8%


Selected WACC	13.6%

540717.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 540717.BO:

cost_of_equity (13.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.56) + 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.