541778.BO WACC - Weighted Average Cost of Capital

The WACC of Deep Polymers Ltd (541778.BO) is 12.7%.

The Cost of Equity of Deep Polymers Ltd (541778.BO) is 15.40%.

The Cost of Debt of Deep Polymers Ltd (541778.BO) is 6.15%.

	Range	Selected
Cost of equity	13.70% - 17.10%	15.40%
Tax rate	28.00% - 29.20%	28.60%
Cost of debt	4.40% - 7.90%	6.15%
WACC	11.2% - 14.3%	12.7%

WACC

541778.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.83	1

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.70%	17.10%

Tax rate	28.00%	29.20%
Debt/Equity ratio	0.32	0.32
Cost of debt	4.40%	7.90%

After-tax WACC	11.2%	14.3%


Selected WACC	12.7%

541778.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 541778.BO:

cost_of_equity (15.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.83) + 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.