541083.BO WACC - Weighted Average Cost of Capital

The WACC of Inflame Appliances Ltd (541083.BO) is 12.6%.

The Cost of Equity of Inflame Appliances Ltd (541083.BO) is 13.50%.

The Cost of Debt of Inflame Appliances Ltd (541083.BO) is 10.55%.

	Range	Selected
Cost of equity	11.90% - 15.10%	13.50%
Tax rate	25.50% - 26.00%	25.75%
Cost of debt	10.00% - 11.10%	10.55%
WACC	11.2% - 14.0%	12.6%

WACC

541083.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.61	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	15.10%

Tax rate	25.50%	26.00%
Debt/Equity ratio	0.2	0.2
Cost of debt	10.00%	11.10%

After-tax WACC	11.2%	14.0%


Selected WACC	12.6%

541083.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 541083.BO:

cost_of_equity (13.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.61) + 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.