541967.BO WACC - Weighted Average Cost of Capital

The WACC of Sky Gold Ltd (541967.BO) is 11.7%.

The Cost of Equity of Sky Gold Ltd (541967.BO) is 13.10%.

The Cost of Debt of Sky Gold Ltd (541967.BO) is 10.45%.

	Range	Selected
Cost of equity	11.50% - 14.70%	13.10%
Tax rate	22.50% - 26.50%	24.50%
Cost of debt	10.20% - 10.70%	10.45%
WACC	10.6% - 12.8%	11.7%

WACC

541967.BO WACC calculation

Category	Low	High

Long-term bond rate	7.4%	7.9%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.59	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.50%	14.70%

Tax rate	22.50%	26.50%
Debt/Equity ratio	0.38	0.38
Cost of debt	10.20%	10.70%

After-tax WACC	10.6%	12.8%


Selected WACC	11.7%

541967.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 541967.BO:

cost_of_equity (13.10%) = risk_free_rate (7.65%) + equity_risk_premium (7.40%) * adjusted_beta (0.59) + 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.