541167.BO WACC - Weighted Average Cost of Capital

The WACC of Yasho Industries Ltd (541167.BO) is 12.9%.

The Cost of Equity of Yasho Industries Ltd (541167.BO) is 13.95%.

The Cost of Debt of Yasho Industries Ltd (541167.BO) is 9.15%.

	Range	Selected
Cost of equity	12.60% - 15.30%	13.95%
Tax rate	27.80% - 29.00%	28.40%
Cost of debt	9.10% - 9.20%	9.15%
WACC	11.8% - 14.0%	12.9%

WACC

541167.BO WACC calculation

Category	Low	High

Long-term bond rate	7.4%	7.9%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.75	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.60%	15.30%

Tax rate	27.80%	29.00%
Debt/Equity ratio	0.16	0.16
Cost of debt	9.10%	9.20%

After-tax WACC	11.8%	14.0%


Selected WACC	12.9%

541167.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 541167.BO:

cost_of_equity (13.95%) = risk_free_rate (7.65%) + equity_risk_premium (7.40%) * adjusted_beta (0.75) + 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.