542012.BO
A-1 Acid Ltd
Price:  
660.95 
INR
Volume:  
50,673.00
India | Trading Companies & Distributors
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542012.BO WACC - Weighted Average Cost of Capital

The WACC of A-1 Acid Ltd (542012.BO) is 14.3%.

The Cost of Equity of A-1 Acid Ltd (542012.BO) is 14.55%.
The Cost of Debt of A-1 Acid Ltd (542012.BO) is 8.35%.

Range Selected
Cost of equity 12.40% - 16.70% 14.55%
Tax rate 25.30% - 27.00% 26.15%
Cost of debt 8.30% - 8.40% 8.35%
WACC 12.3% - 16.4% 14.3%
WACC

542012.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.67 0.95
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.40% 16.70%
Tax rate 25.30% 27.00%
Debt/Equity ratio 0.03 0.03
Cost of debt 8.30% 8.40%
After-tax WACC 12.3% 16.4%
Selected WACC 14.3%

542012.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 542012.BO:

cost_of_equity (14.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.67) + 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.