542013.BO WACC - Weighted Average Cost of Capital

The WACC of Dolfin Rubbers Ltd (542013.BO) is 14.7%.

The Cost of Equity of Dolfin Rubbers Ltd (542013.BO) is 15.55%.

The Cost of Debt of Dolfin Rubbers Ltd (542013.BO) is 7.65%.

	Range	Selected
Cost of equity	13.80% - 17.30%	15.55%
Tax rate	27.90% - 28.40%	28.15%
Cost of debt	7.50% - 7.80%	7.65%
WACC	13.1% - 16.3%	14.7%

WACC

542013.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	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.80%	17.30%

Tax rate	27.90%	28.40%
Debt/Equity ratio	0.09	0.09
Cost of debt	7.50%	7.80%

After-tax WACC	13.1%	16.3%


Selected WACC	14.7%

542013.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 542013.BO:

cost_of_equity (15.55%) = 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.