541445.BO WACC - Weighted Average Cost of Capital

The WACC of WAA Solar Ltd (541445.BO) is 12.2%.

The Cost of Equity of WAA Solar Ltd (541445.BO) is 18.05%.

The Cost of Debt of WAA Solar Ltd (541445.BO) is 13.40%.

	Range	Selected
Cost of equity	13.60% - 22.50%	18.05%
Tax rate	20.50% - 23.20%	21.85%
Cost of debt	8.20% - 18.60%	13.40%
WACC	8.2% - 16.2%	12.2%

WACC

541445.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.81	1.58

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.60%	22.50%

Tax rate	20.50%	23.20%
Debt/Equity ratio	3.35	3.35
Cost of debt	8.20%	18.60%

After-tax WACC	8.2%	16.2%


Selected WACC	12.2%

541445.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 541445.BO:

cost_of_equity (18.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.81) + 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.