541445.BO WACC - Weighted Average Cost of Capital

The WACC of WAA Solar Ltd (541445.BO) is 10.7%.

The Cost of Equity of WAA Solar Ltd (541445.BO) is 16.20%.

The Cost of Debt of WAA Solar Ltd (541445.BO) is 10.25%.

	Range	Selected
Cost of equity	13.40% - 19.00%	16.20%
Tax rate	20.50% - 23.20%	21.85%
Cost of debt	8.40% - 12.10%	10.25%
WACC	8.9% - 12.5%	10.7%

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	0.79	1.2

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.40%	19.00%

Tax rate	20.50%	23.20%
Debt/Equity ratio	2	2
Cost of debt	8.40%	12.10%

After-tax WACC	8.9%	12.5%


Selected WACC	10.7%

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 (16.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.79) + 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.