540795.BO WACC - Weighted Average Cost of Capital

The WACC of Dynamic Cables Ltd (540795.BO) is 14.0%.

The Cost of Equity of Dynamic Cables Ltd (540795.BO) is 15.30%.

The Cost of Debt of Dynamic Cables Ltd (540795.BO) is 11.50%.

	Range	Selected
Cost of equity	13.90% - 16.70%	15.30%
Tax rate	26.10% - 29.70%	27.90%
Cost of debt	10.60% - 12.40%	11.50%
WACC	12.8% - 15.2%	14.0%

WACC

540795.BO WACC calculation

Category	Low	High

Long-term bond rate	7.5%	8.0%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.93	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.90%	16.70%

Tax rate	26.10%	29.70%
Debt/Equity ratio	0.23	0.23
Cost of debt	10.60%	12.40%

After-tax WACC	12.8%	15.2%


Selected WACC	14.0%

540795.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 540795.BO:

cost_of_equity (15.30%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (0.93) + 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.