542383.BO WACC - Weighted Average Cost of Capital

The WACC of Ritco Logistics Ltd (542383.BO) is 13.3%.

The Cost of Equity of Ritco Logistics Ltd (542383.BO) is 15.50%.

The Cost of Debt of Ritco Logistics Ltd (542383.BO) is 12.45%.

	Range	Selected
Cost of equity	14.00% - 17.00%	15.50%
Tax rate	23.70% - 28.60%	26.15%
Cost of debt	11.40% - 13.50%	12.45%
WACC	12.1% - 14.4%	13.3%

WACC

542383.BO WACC calculation

Category	Low	High

Long-term bond rate	7.5%	8.0%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.93	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.00%	17.00%

Tax rate	23.70%	28.60%
Debt/Equity ratio	0.54	0.54
Cost of debt	11.40%	13.50%

After-tax WACC	12.1%	14.4%


Selected WACC	13.3%

542383.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 542383.BO:

cost_of_equity (15.50%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (0.93) + 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.