540730.BO WACC - Weighted Average Cost of Capital

The WACC of Mehai Technology Ltd (540730.BO) is 11.2%.

The Cost of Equity of Mehai Technology Ltd (540730.BO) is 11.10%.

The Cost of Debt of Mehai Technology Ltd (540730.BO) is 19.90%.

	Range	Selected
Cost of equity	9.80% - 12.40%	11.10%
Tax rate	28.30% - 34.10%	31.20%
Cost of debt	7.90% - 31.90%	19.90%
WACC	9.5% - 13.0%	11.2%

WACC

540730.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.35	0.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	12.40%

Tax rate	28.30%	34.10%
Debt/Equity ratio	0.07	0.07
Cost of debt	7.90%	31.90%

After-tax WACC	9.5%	13.0%


Selected WACC	11.2%

540730.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 540730.BO:

cost_of_equity (11.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.35) + 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.