540796.BO WACC - Weighted Average Cost of Capital

The WACC of Ratnabhumi Developers Ltd (540796.BO) is 33.9%.

The Cost of Equity of Ratnabhumi Developers Ltd (540796.BO) is 11.40%.

The Cost of Debt of Ratnabhumi Developers Ltd (540796.BO) is 71.35%.

	Range	Selected
Cost of equity	9.00% - 13.80%	11.40%
Tax rate	27.50% - 31.40%	29.45%
Cost of debt	18.60% - 124.10%	71.35%
WACC	11.7% - 56.1%	33.9%

WACC

540796.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.25	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	13.80%

Tax rate	27.50%	31.40%
Debt/Equity ratio	1.45	1.45
Cost of debt	18.60%	124.10%

After-tax WACC	11.7%	56.1%


Selected WACC	33.9%

540796.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 540796.BO:

cost_of_equity (11.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.25) + 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.