541778.BO WACC - Weighted Average Cost of Capital

The WACC of Deep Polymers Ltd (541778.BO) is 13.1%.

The Cost of Equity of Deep Polymers Ltd (541778.BO) is 15.85%.

The Cost of Debt of Deep Polymers Ltd (541778.BO) is 8.60%.

	Range	Selected
Cost of equity	14.10% - 17.60%	15.85%
Tax rate	26.30% - 27.50%	26.90%
Cost of debt	8.60% - 8.60%	8.60%
WACC	11.9% - 14.3%	13.1%

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	0.87	1.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.10%	17.60%

Tax rate	26.30%	27.50%
Debt/Equity ratio	0.41	0.41
Cost of debt	8.60%	8.60%

After-tax WACC	11.9%	14.3%


Selected WACC	13.1%

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 (15.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.87) + 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.