540717.BO WACC - Weighted Average Cost of Capital

The WACC of Polo Queen Industrial and Fintech Ltd (540717.BO) is 11.6%.

The Cost of Equity of Polo Queen Industrial and Fintech Ltd (540717.BO) is 11.65%.

The Cost of Debt of Polo Queen Industrial and Fintech Ltd (540717.BO) is 10.10%.

	Range	Selected
Cost of equity	9.90% - 13.40%	11.65%
Tax rate	26.50% - 28.70%	27.60%
Cost of debt	8.60% - 11.60%	10.10%
WACC	9.9% - 13.4%	11.6%

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	0.37	0.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	13.40%

Tax rate	26.50%	28.70%
Debt/Equity ratio	0.02	0.02
Cost of debt	8.60%	11.60%

After-tax WACC	9.9%	13.4%


Selected WACC	11.6%

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 (11.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.37) + 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.